Tag Archives: Real Estate Bubble

Rust Belt Cities Recovering from Recession; Sun Belt Cities Still Struggling

CNN is reporting that many cities that were hard hit by the recession early on are starting to recover, while economic conditions continue to decline Sun Belt cities in Florida, California, Nevada and Arizona.

RealtyTrac and The Federal Reserve BankĀ are reporting that the recession appears to be ending in the Northeast and Midwest but is continuing to ravage the Southwest.

foreclosure

All this is from the article:

Many cities with populations larger than one million experienced rapid increases in foreclosure during the past six months. Seattle, for example, wasn’t the worst hit city, but it experienced the biggest increase in the rate of filings. While a relatively small 1 in 107 homes received notices, that is a 72% jump compared with the same period a year ago. In second place was Minneapolis, where the filing rate grew by 58.6% to 1 in 90 homes; Phoenix spiked 51.7% to 1 in 22.

But some big cities showed substantial improvement. Filings in Greater New York fell 23.5% (1 in 211), and tumbled 40.7% in Boston (1 in 144) and 31.3% in Houston (1 in 153)

Taking the title of foreclosure capital is Las Vegas, which surpassed Stockton, Calif., for the honors. Stockton, which is 80 miles east of San Francisco, wore the crown for all of 2008.

Vegas, with a whopping 1 in 13 properties receiving a foreclosure filing during the first six months of 2009, is six times worse than the national average of 1 in 84. The number grew 56% since the first half of 2008.

The Cape Coral-Ft. Myers, Fla., area was second with 1 in 14 homes. California posted six cities in the top 10 list, with Merced coming in third at 1 in 15 homes being in trouble.

The Rust Belt, however, may have put the worst of its foreclosure problems behind it. Now even economically devastated Detroit recorded only 1 in 54 properties receiving filings. That’s a 16% decline over the first half of 2008.

Cleveland, one of the first cities to get whacked, has also improved and is now ranked only 56th among all U.S. metro areas. The city was once home to the nation’s hardest hit neighborhood — Slavic Village — but filings are now just 1 for every 73 homes, a 30% decline.

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