The Nation’s Top Ten Foreclosure Markets: A Snapshot
Earlier this week, we talked about the shifting dynamics of the U.S. housing market and specifically, where you shouldn’t be buying a house now if you’re an investor, or can afford to wait and see how the market lands. Below, we’ll take a look at markets being hit hardest by foreclosure — which could mean fiscal disaster, or opportunity, depending on your position.
The cities below are ranked by percentage of homes currently in the foreclosure stage.
1. GREELEY, CO
Median home price: $163,700
Portion of households in foreclosure: 0.59%
Change since January: 14.7%
Aggressive residential development and risky home loan underwriting have combined with stagnant wages to give this area a foreclosure rate about seven times higher than the national average.
2. DETROIT, MI
Median home price: $118,800
Portion of households in foreclosure: 0.51%
Change since January: 81.1%
The auto industry, critical to the region’s economy, shows no sign of recovery, as Ford just announced a quarterly loss of $5.8 billion. Houses are hard to unload at any price, which is not a good sign for the Michigan housing market.
3. MIAMI, FL
Median home price: $349,900
Portion of households in foreclosure: 0.37%
Change since January: 91.2%
A cooling economy, plus rises in homeowner’s insurance premiums, energy prices and mortgage rates make it tougher for home owners, especially for those who bought in at recent high prices.
4. INDIANAPOLIS, IN
Median home price: $123,000
Portion of households in foreclosure: 0.35%
Change since January: -16.3%
This big automotive industry supplier city has suffered economic setbacks and falling home prices have made it more difficult for homeowners in the Indiana to bail out with some profit if they’re in jeopardy.
5. FORT LAUDERDALE, FL
Median home price: $360,800
Portion of households in foreclosure: 0.34%
Change since January: 118.5%
The good news for a Florida mortgage holder in trouble is that many of the properties entering the foreclosure stage in this area aren’t moving through the entire process. Steep rises in prices the past few years have enabled many owners to sell out before losing their properties entirely.
6. DENVER, CO
Median home price: $246,300
Portion of households in foreclosure: 0.33%
Change since January: 9.2%
The impact from past job layoffs in the telecommunications industry and a building boom that ran past demand have finally hit this otherwise booming city and made it harder for homeowners to pay the Colorado mortgage bill on time or unload their properties at a profit.
7. DAYTON, OH
Median home price: $117,400
Portion of households in foreclosure: 0.33%
Change since January: 12.6%
Advocates for homeowners say lax state regulations have made Ohio especially vulnerable to predatory lending practices, which has contributed largely to the boost in the foreclosure rates.
8. DALLAS, TX
Median home price: $156,100
Portion of households in foreclosure: 0.31%
Change since January: -34.4%
Thanks to very few regulations on growth, developers have steadily added to housing inventory, which has depressed prices and made it difficult to sell existing homes and get out from under unaffordable Texas mortgage loan debt.
9. FORT WORTH, TX
Median home price: $125,900
Portion of households in foreclosure: 0.31%
Change since January: -13.4%
Just 35 miles from Dallas, the problem is still the same. Stagnated income and rising property tax rates have contributed to the foreclosure spike occurring all over north Texas.
10. ATLANTA, GA
Median home price: $166,800
Portion of households in foreclosure: 0.30%
Change since January: -28.0%
Corporate layoffs and big cuts in employee pension plans have combined with resetting interest rates (particularly on Option ARMs) to boost Georgia mortgage foreclosures — in the capital city and Fulton County as a whole, that problem has never been more apparent.