One of the most distressing real estate topics we hear in the news is the foreclosure rate. Realty Trac, the California based company that tracks foreclosure information, just released the news that foreclosures rose 81% in 2008. But to put this in the proper perspective, one needs to consider two things:
The total percentage of homes in foreclosure is 1.84%. An 81% increase appears dramatic, but the fact is that this overall percentage rate is relatively small.
The majority of foreclosures are in areas of the country where real estate values rose at unsustainable rates and/or land available for development caused excess new construction. These include the coastal areas of California and Florida, as well as Arizona and Las Vegas, Nevada. One of the primary reasons that there has been steep price declines in these areas is because of the number of foreclosed properties on the market.
The eight-county Philadelphia region placed 77th of 100 metro areas nationwide in the number of foreclosure filings recorded in 2008, not too bad.
Prudential Fox and Roach REALTORS®
530 Walnut St., Suite 260 Philadelphia, PA 19106