Foreclosure Listing Prices Continue to Drop in Major U.S. Markets at Real estate for dummies by Real Estate MAX

Foreclosure Listing Prices Continue to Drop in Major U.S. Markets

Prices of properties in foreclosure listing and non-foreclosed dwellings have hit an all time low in the U.S., housing industry analysts have reported. They stated that prices are likely to decline further in the coming months. A big number of metro areas have reportedly reached their lowest points in terms of home prices. Analysts have stated though, that very few are taking advantage of the low prices.

According to market analysts, even with cheap houses in abundance, buyers are staying away from the market. They stated that part of the reason is the tight lending environment which makes it difficult for buyers to secure loans. Others are waiting on the sidelines, believing that prices will decline further in the coming months. There is also the factor of unemployment, analysts have said.

They explained that even those who are willing to make a purchase now are not making a move, simply because they do not have the means to even buy a repo home for sale offered at a bargain price. A huge number of Americans have lost their jobs in the past year and most are barely getting by, so a home purchase is definitely out of the question for them. Analysts also stated that the continuous rise in the number of foreclosed properties is scaring some buyers off.

Nationwide housing data showed that recovery varies from one city to another. Those that have high unemployment levels and huge supplies of properties in foreclosure listing are more likely to struggle. A Standard & Poor's/Case Shiller report revealed that 11 U.S. housing markets saw their housing prices decline to their lowest level since the market crisis started in 2007.

Most of these metro areas have huge supplies of bank owned houses; like Las Vegas, Tampa and Miami in Florida, Seattle, Detroit, Chicago and Phoenix. In Las Vegas, for example, prices have gone down by more than 50% last year compared with 2006 levels and houses are now being sold for a price lower than the average selling rate recorded in 2000. Las Vegas has the highest foreclosure rate in the whole country and an unemployment rate of 14.9% as of December 2010.

Real estate experts are predicting that properties in foreclosure listing will rise again this year. Most are expecting the foreclosure crisis to peak in 2011, before starting a recovery in 2012. For areas like Las Vegas though, the recovery is expected to take longer and will probably be slower compared with the rest of the U.S.

Foreclosure Listing Prices Continue to Drop in Major U.S. Markets is a post from: Foreclosure Magazine – Read more about how does foreclosure work.