Foreclosure – Sagging Housing market in States

Posted on September 17th, 2007 by hinson

The housing market is facing a slump and there is no hope of increase in prices. It seems as if the buyers are ruling the market and dictating their terms and conditions. The homeowners crippled due to the adjustable rate mortgages are left with no choice but to sell their homes to foreclosure. They are forced to sell their homes at the rates that are far below their level of expectation. People who bought homes in the year 2005 or perhaps 2006 are mainly facing the brunt of foreclosure.

The Associate director of the Public Policy Institute of California says that the credit market is moving at a very slow pace and having far reaching consequences on the lives of the buyers. It has caused panic all over and the people are not showing a favorable response to buy the homes or even lend credit. The beleaguered homeowners are absolutely fed up of the foreclosure situation that is on the verge of taking a heavy toll on the entire nation.

The homeowners are so scared that they don’t want to utter a single word and are striving hard to sell their house as soon as possible even at lower prices. The market has become unstable and there are limited number of buyers for the foreclosed properties. The supply of the foreclosed property has surpassed its demand and the result is that the few buyers who are showing interest in buying the property are leading the housing market. They are setting their own terms of buying the property and determining the price.

Survey was conducted by the Contra Costa Times and the research findings are that the counties of Alameda and east Contra Costa are witnessing the maximum drop in the value of foreclosed houses. Other areas that are witnessing a similar situation are the counties of Pleasant Hill, Solano and Walnut Creek. Each of these areas is badly hit by the sharp decline in the prices of housing units. It is expected that the sluggish market will infect even the Bay Area.

According to the recent reports released by the firm RealtyTrac, San Joaquin County has suffered the most. It has the highest number of foreclosed properties which is very depressing. One out of every 27 houses is going through the proceedings of foreclosure in this county. There are a few areas where the median price has risen but that does not mean the situation has improved. Even now, there are several areas that are in deplorable condition due to the drastic fall in prices.

Via