Real Estate Prices Down In U.S. Due To Foreclosures

March 17th, 2008

The prices of real estate propertie s are going down at a massive rate with the start of foreclosure deals. As more areas face the tumbling down problems of foreclosures, statistics result in the most hard-hit real estate prices to date. Home prices have hit a rock bottom and slid down by around 8.9% in the last quarter of the previous year.

About 8% of homes in U.S. have faced foreclosures in January, according to the California-based RealtyTrac Inc. Compared to January 2006, the number has actually gone up to 57%, according to the mortgage research firm.

Standard & Poor’s index has in fact delineated that drops in the house prices in 17 out of the 20 houses across U.S. metropolitans have in fact put a downward slope of nearly 10% or more in 8 or more cities even.

One of the index creators, Robert Shiller, has pointed out that the situations are bleak all throughout. The drop has been even steeper in the last week of February of this year.

Nearly 23,000 homes have got the warning bells of being foreclosed in this January as a matter of overdue payments. Resulting from a rise-up from 148,425 in 2006 this has been a massive high in the amounts of foreclosed properties as seen in any of the previous years.

As a result, more and more families have been making it into the defaulter’s lists with a higher rate in the properties going to the banks. The Vice President of RealtyTrac’s marketing sector has pointed out that lenders are, in fact, having trouble reselling their real estate properties under such coercive implements of sales strategies.

The Southern states have been reportedly the worst sufferers according to reports. The cities have been the most effected according to foreclosure reports with the home price indexing falling onto 17.5% in Miami foreclosures itself! The Cape Coral-Fort Myers area in the state of Florida had experienced the greatest hit under the ravaging forces of foreclosures. As compared to any other metro, this city had been the worst hit.

Stockton foreclosures, the eastern part of San Francisco, California, was given the second places in running up high foreclosures. The Riverside-San Bernardino area of Southern California came third in this case.

The state of California has been the state with the highest number of foreclosure fill ups including 57,158 properties following Florida with about 30,178 fill ups. In regards to the rates, foreclosures in Las Vegas and Phoenix has followed the footsteps of Miami while next in toe were Los Angeles, San Diego, San Francisco, Detroit and Washington D.C.