For many, foreclosure has become an unpleasant reality. In my home state of California, some cities are at the top of the list for foreclosures.
As reported by the California Association of Reators, some of the hardest hit cities include, Riverside, Stockton, Sacramento, Bakersfield and Oakland. In fact, Stockton leads the 100 largest metro areas for foreclosures. They currently have 1 foreclosure for every 31 households.
The long term forecast seems in question. Both sides seem to be rolling out the "data". On side sees things making a turn up the other down. From looking at the data, it seems things could go either way.
I know that we are seeing far more short sales in my area than I ever imagined. I make a point of visiting every listing in my town and about 3 of the last 5 I visited were all short sales.
If this trend continues for a prolonged period, it is hard to see how every level of real estate would not be effected. If it is less protracted and we see the foreclosure trend peak relatively quickly and then decline, the effects could be more easily mitigated.
In my county, while foreclosures are up, they are not at the level seen elsewhere. Average home prices continue to be up. However, the longer scenario could definitely bring my area into tougher times as well.
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