Home value problems could continue long into the future
01/07/2011
By Credit.com Staff
Housing prices in cities most affected by the foreclosure crisis could remain depressed below their pre-recession levels until as late as 2030, according to a new study from the Mortgage Bankers Association, which relied on data from Moody's Investor Services. This is especially true of cities in California, Arizona and Nevada, states where the housing meltdown had particularly harsh effects.
The cities of Stockton and Modesto, California, saw their average home prices drop 75 and 73 percent, respectively, the report said. Cape Coral, Florida, dealt with declines of 60 percent.
But this trend is a change from the one observed in previous years, in which so-called Rust Belt cities, such as Detroit, Pittsburgh and Cleveland were the most affected, the report said. This was largely because many consumers left town to pursue job opportunities elsewhere.
Foreclosures have forced millions of Americans from their homes nationwide, leading to empty properties remaining on the market for months or even years.
