Statistics suggest some improvement in the housing market, but the good news for homeowners might be just a temporary setback for real estate investors searching for a good deal.
Decreases in the number of foreclosure filings in each state and increases in
prices in many of those same states seem to suggest good news, although the
news is still mixed in some parts of the country. In five of the top markets,
filings have decreased: California (down by nearly 5%), Michigan (down by just
over 4%), Florida (down by 8.5%), Arizona (down by 9%), and Texas (down by
more than 7%). However, Colorado has seen the largest drop in foreclosures
with a decrease of more than 13%. Unfortunately, the statistics are not so
promising for all states. West Virginia, for example, saw an increase in
foreclosures of more than 17%.
Within these and other key states, the changes in foreclosure filings in major
cities also seem to be showing improvement with only a few exceptions. In
Phoenix, the number of foreclosures dropped by over 8%, the rates in Memphis
fell by nearly 12%, the filings in Miami toppled by just over 14%. Other
states also saw a decrease: Atlanta (2%) and Houston (3.7%). However, both
Chicago and Detroit saw their rates of foreclosure increase by less than 1%
and by just over 5%, respectively.
Although fewer foreclosures can help reduce the supply of available homes on
the market, the prices are also important. In four out of the five top real
estate markets, prices have increased. In both California and Florida, the
price increase is less than 1% bringing the average costs to $347,878 and
$222,950, respectively. Michigan’s home prices went up by 1.4% to $91,614
while the prices in Texas increased by 4.8% to $116,016. Prices actually
decreased in Georgia: falling 2.6% to $126,914. The lowest average price for
homes, according to ForeclosureListings.com, is $60,940 in Ohio.