We've all read about the growing number of foreclosed properties out there. According to the Mortgage Bankers Association (MBA), one in 10 borrowers is seriously delinquent on their mortgage, up from one in 16 borrowers a year ago, and one in 33 two years ago. Increasingly, I'm being asked whether or not all these distressed properties are having a negative impact upon existing home values here in Westfield and our surrounding Union County towns. The short answer is...maybe. It all depends on where you live.
Union County Foreclosure Levels Among The Highest In The State.
It's important to understand that while foreclosures are a big problem nationally, they are not as common here in New Jersey. Nationally, over 50 percent of all foreclosures are concentrated in only 4 states... California, Florida, Michigan and Illinois. NJ ranks only 39th out of all 50 states in total reported foreclosures. That's the good news. But their numbers are growing here in NJ, and a large number of distressed property sales CAN pull down the value of neighboring homes. That's the bad news.
According to Realty Trac, the nation's largest provider of foreclosure information, Union County ranks 3rd highest in terms of NJ's reported foreclosures...behind only Essex and Ocean Counties. That number concerns me. But the number of new filings varies dramatically across all Union County towns.
Realty Trac Heat Map
Realty Trac also maintains this "heat map". The map shows the concentration of new foreclosure filings for the month of February, 2010. What you see here is that new filings are ABOVE THE COUNTY AVERAGE in some towns, but SIGNIFICANTLY LOWER in others. In the towns with the highest concentrations, I'm seeing property values suffer. In towns wil the lowest levels, I'm not seeing any significant impact.
The Take-Away
Depending on where in Union County you live, foreclosures may or may not have a negative impact your (read the rest of the story)
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