By Ryan Jackson
Nevada has led the U.S. in foreclosures for more than five years straight and it has also suffered the highest loss in average housing deflation, according to an audit conducted by Housing Predictor. With Las Vegas at the center of action, Sin City has sustained 62 months as the nation’s foreclosure capital sending home values tumbling.
With the second highest Alt-A mortgage level in the nation at the height of its housing market, Nevada hit 60.2% in average housing deflation, according to CoreLogic.
Despite making a comeback in home prices over the past two months, Arizona suffered the second highest decline in home values from peak to current declines, averaging 49.8%. Florida came in a close third at 48.6% just two-tenths of a percent off.
Hard hit Michigan, which has seen its population drop by 80% in the Detroit metropolitan area in the last two decades placed fourth with 44%. The Motor City saw its fortunes improve twice since the collapse in the U.S. real estate market. Home values saw an increase during the federal home buyer tax credit and are rising in most areas of the state after declining for most of the last six years.
California sustained the fifth highest level of housing deflation averaging 43.7%.
The drop in home values has been devastating for the U.S. economy and homeowners, many of whom are wondering whether prices will ever rise to historic high levels reached during the housing bubble again.
Fewer homes priced as bank REOs and a back log inventory of Freddie Mac and Fannie Mae homes that have not yet been listed by real estate agents for sale are slowing foreclosure sales.
“The continued strength of sales activity and tightening inventories in many markets are early and hopeful signs that prices will continue to stabilize and improve in the coming months,” said CoreLogic CEO Anand Nallathambi. “In fact, non-distressed home sale prices, which represent two-thirds of all sales, have appreciated by just over 1.0% since the beginning of the year.”