Foreclosure and The Economic State of the Union
Four of the sunbelt states that were hit hardest by the sub-prime mortgage fallout -California, Arizona, Nevada and Florida — have recently stabilized, though foreclosure and bankruptcy rates have held steady. Some economists are now describing our current situation as a recovery, though it has been a markedly slow and weak one.
With conflicting data as to whether or not the real estate market has bottomed out, potential foreclosed property buyers are wondering, “Is the worst over?” The answer to that question depends on who you ask and where you ask it. Some parts of the country are showing signs of recovery, while others have yet to turn the corner.
While number of foreclosed homes for sale has peaked some states, it is still rising in others. With the country still teetering between recession and recovery, foreclosed houses still abound. In the states where foreclosures have leveled out, they have done so at high levels. If in fact the market has already bottomed out, it has yet to fully recover.