house prices http://www.wisebread.com/taxonomy/term/9485/all en-US Do You Live In One Of America’s Most Foreclosure-Ridden Towns? http://www.wisebread.com/do-you-live-in-one-of-americas-most-foreclosure-ridden-towns <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/do-you-live-in-one-of-americas-most-foreclosure-ridden-towns" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/3189812973_77e29f6bcb_b.jpg" alt="Foreclosure" title="Foreclosure" class="imagecache imagecache-250w" width="250" height="211" /></a> </div> </div> </div> <p>I&rsquo;ve seen several houses in my area go into foreclosure over the last 12 months. The economy and over-inflated housing prices, coupled with predatory lenders and some very bad decision-making, have turned something that was once quite rare into a full-blown epidemic. But some places are having it worse than others; much worse. Do you live in one of those unfortunate towns? You're about to find out.</p> <p><a href="http://www.forbes.com/2009/04/21/foreclosure-mortgage-homes-lifestyle-real-estate-foreclosed-homes.html">Forbes.com</a> has been working with a company called <a href="http://www.realtytrac.com/">RealtyTrac</a> (based in Irvine, California) to determine which towns in America have been in the hardest by the foreclosure crisis. This, from Forbes.com:</p> <p>&ldquo;RealtyTrac&hellip;provided us data for homes that are currently in foreclosure or are bank-owned. To determine the country's hardest hit areas, we measured every region under 100,000; these include areas classified as cities, towns, boroughs, Census-designated places and townships. We elected to call these &quot;towns,&quot; as they reflect a smaller regions than a metropolitan statistical area--geographic entities defined by the U.S. Office of Management and Budget for use by federal agencies in collecting, tabulating and publishing federal statistics. These are typically larger groups of regions with a city core.</p> <p>Unlike a large city, which might have massive foreclosure problems in one area, but is sizable enough that other parts of town are immune, these towns are far less resilient. <br /> The results shocked even me, someone with more than a streak of pessimism coursing through my veins.&rdquo;</p> <p>Not surprisingly, towns in California were prevalent in the list, although the top spot for foreclosures actually goes to a small town in Arizona. If you live in one of these 20 towns on the list, that means both good and bad news. Obviously, if you&rsquo;re a homeowner in one of the following areas, this is&nbsp; pretty crappy for you. Foreclosures directly impact the price of your own home, and even if you&rsquo;re not planning to sell yet, it makes it very hard to even get a refinance or loan modification.</p> <p>However, if you&rsquo;re in the market for a deal and live near (or in) one of these towns, then you could find yourself some real bargains. Properties in foreclosure can be picked up at a steal. It&rsquo;s a shame you&rsquo;ll be making good on someone else&rsquo;s misfortune, but this economy is one huge double-edged sword. </p> <p>Here&rsquo;s the top 20 list in reverse order:</p> <p><strong>20. Tracy, Calif.</strong><br /> People per foreclosure: 110<br /> Population: 81,000<br /> Properties in foreclosure: 610<br /> Properties fully bank-owned: 133</p> <p><strong>19. Hesperia, Calif.</strong><br /> People per foreclosure: 102<br /> Population: 80,000<br /> Properties in foreclosure: 710<br /> Properties fully bank-owned: 85</p> <p><strong>18. Los Banos, Calif.</strong><br /> People per foreclosure: 92<br /> Population: 35,000<br /> Properties in foreclosure: 293<br /> Properties fully bank-owned: 87</p> <p><strong>17. Lake Elsinore, Calif.</strong><br /> People per foreclosure: 88<br /> Population: 49,000<br /> Properties in foreclosure: 476<br /> Properties fully bank-owned: 90</p> <p><strong>16. Fernley, Nev.</strong><br /> People per foreclosure: 87<br /> Population: 12,500<br /> Properties in foreclosure: 101<br /> Properties fully bank-owned: 45</p> <p><strong>15. San Jacinto, Calif.</strong><br /> People per foreclosure: 85<br /> Population: 34,000<br /> Properties in foreclosure: 328<br /> Properties fully bank-owned: 80</p> <p><strong>14. Lathrop, Calif.</strong><br /> People per foreclosure: 82<br /> Population: 17,500<br /> Properties in foreclosure: 167<br /> Properties fully bank-owned: 45</p> <p><strong>13. Adelanto, Calif.</strong><br /> People per foreclosure: 80<br /> Population: 27,500<br /> Properties in foreclosure: 285<br /> Properties fully bank-owned: 58<br /> <strong><br /> 12. Patterson, Calif.</strong><br /> People per foreclosure: 80<br /> Population: 18,000<br /> Properties in foreclosure: 176<br /> Properties fully bank-owned: 49<br /> <strong><br /> 11. Maricopa, Ariz.</strong><br /> People per foreclosure: 76<br /> Population: 37,000<br /> Properties in foreclosure: 315<br /> Properties fully bank-owned: 180<br /> <strong><br /> 10. Heber, Calif.</strong><br /> People per foreclosure: 74<br /> Population: 4,000<br /> Properties in foreclosure: 45<br /> Properties fully bank-owned: 10</p> <p><strong>9. Perris, Calif.</strong><br /> People per foreclosure: 70<br /> Population: 53,000<br /> Properties in foreclosure: 657<br /> Properties fully bank-owned: 108</p> <p><strong>8. Buckeye, Ariz.</strong><br /> People per foreclosure: 61<br /> Population: 29,000<br /> Properties in foreclosure: 314<br /> Properties fully bank-owned: 168</p> <p><strong>7. Olivehurst, Calif.</strong><br /> People per foreclosure: 61<br /> Population: 11,000<br /> Properties in foreclosure: 128<br /> Properties fully bank-owned: 53</p> <p><strong>6. Fairburn, Ga.</strong><br /> People per foreclosure: 57<br /> Population: 8,500<br /> Properties in foreclosure: 75<br /> Properties fully bank-owned: 75</p> <p><strong>5. Parrish, Fla.</strong><br /> People per foreclosure: 54<br /> Population: 6,900<br /> Properties in foreclosure: 126<br /> Properties fully bank-owned: 2</p> <p><strong>4. Lehigh Acres, Fla.</strong><br /> People per foreclosure: 50<br /> Population: 67,000<br /> Properties in foreclosure: 1099<br /> Properties fully bank-owned: 251</p> <p><strong>3. Litchfield Park, Calif.</strong><br /> People per foreclosure: 44<br /> Population: 5,500<br /> Properties in foreclosure: 82<br /> Properties fully bank-owned: 43</p> <p><strong>2. Tolleson, Ariz.</strong><br /> People per foreclosure: 27<br /> Population: 6,800<br /> Properties in foreclosure: 188<br /> Properties fully bank-owned: 61<br /> &nbsp;</p> <p><u>and now, the NUMBER&nbsp;ONE town in America for foreclosures...</u></p> <p> <strong>1. Queen Creek, Ariz.</strong><br /> People per foreclosure: 25<br /> Population: 20,500<br /> Properties in foreclosure: 533<br /> Properties fully bank-owned: 302<br /> &nbsp;</p> <p>If you do happen to live in Queen Creek, Arizona, please write and tell us how this is affecting you.</p> <p> Source: <a href="http://www.forbes.com/2009/04/21/foreclosure-mortgage-homes-lifestyle-real-estate-foreclosed-homes.html">Forbes.com</a></p> <p>&nbsp;</p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/paul-michael">Paul Michael</a> of <a href="http://www.wisebread.com/do-you-live-in-one-of-americas-most-foreclosure-ridden-towns">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-1"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/how-does-the-fannie-mae-and-freddie-mac-bailout-affect-you">How does the Fannie Mae and Freddie Mac bailout affect you?</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/will-house-prices-keep-dropping">Will house prices keep dropping?</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/think-the-housing-bubble-was-bad-check-out-these-other-crazy-investment-bubbles">Think the Housing Bubble Was Bad? Check Out These Other Crazy Investment Bubbles</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/its-time-to-purchase-like-its-1999">It&#039;s Time to Purchase Like It&#039;s 1999</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/should-you-skip-a-mortgage-payment-to-get-a-banks-attention">Should you skip a mortgage payment to get a bank&#039;s attention?</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Consumer Affairs Investment Real Estate and Housing bank Economy homes house prices repossession Thu, 23 Apr 2009 20:40:28 +0000 Paul Michael 3080 at http://www.wisebread.com Will house prices keep dropping? http://www.wisebread.com/will-house-prices-keep-dropping <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/will-house-prices-keep-dropping" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/foreclosure-sign.jpg" alt="Foreclosure sign in front of a house" title="Sign Of The Times - Foreclosure" class="imagecache imagecache-250w" width="250" height="188" /></a> </div> </div> </div> <p>I don&#39;t think much of the &quot;buy low, sell high&quot; model for house purchases.  I think a house should be purchased as a place to live, in which case the main questions are whether you want to live there and whether you can afford it, not whether prices have hit bottom.  Still, it&#39;s a question of interest to a lot of people, so I&#39;ve been meaning to write an article on the topic.  Happily, Vladimir Klyuev, an economist with the International Monetary Fund, has written it, so I don&#39;t have to.</p> <p>There are a lot of ways to look at what the &quot;right&quot; level is for house prices.  In the IMF Working Paper <a href="http://www.imf.org/external/pubs/ft/wp/2008/wp08187.pdf">What Goes Up Must Come Down? House Price Dynamics in the United States</a>, Klyuev looks at two of them:  the supply and demand fundamentals, and an asset-market perspective.</p> <p>It&#39;s worth reading the paper, but I think you can get most of the story from just this one graph:</p> <p><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/u203/real-home-price-vs-rent.png" alt="Graph of real house prices versus real rent" title="House Prices vs Rent" width="500" height="333" /></p> <p>The red line is the real (i.e. inflation-adjusted) cost of rent.  The blue line is the real home price.  If we can expect the costs of houses and of rent to return to roughly the same relationship that they had between 1970 and 2000--and I think we can--then it looks to me like house prices still have a long way to fall.</p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/philip-brewer">Philip Brewer</a> of <a href="http://www.wisebread.com/will-house-prices-keep-dropping">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-2"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/do-you-live-in-one-of-americas-most-foreclosure-ridden-towns">Do You Live In One Of America’s Most Foreclosure-Ridden Towns?</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/the-cost-of-a-free-ride-why-not-to-use-a-buyers-agent-submitted-by-ken-rick">The cost of a free ride - why not to use a buyer&#039;s agent</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/is-a-buying-a-foreclosed-home-ever-a-good-idea">Is Buying a Foreclosed Home Ever a Good Idea?</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/the-process-for-purchasing-a-house-with-cash">The Process for Purchasing a House With Cash</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/7-surprising-facts-about-roth-iras">7 Surprising Facts About Roth IRAs</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Investment Real Estate and Housing buying a house home prices home purchase house prices imf Tue, 29 Jul 2008 11:53:01 +0000 Philip Brewer 2274 at http://www.wisebread.com