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In November’s Home Value report from Pro Teck Services, the top 10 core-based statistical areas that saw the largest home values also experienced a double-digit percent decrease in foreclosures ratio – a further sign of market health and recovery.
Fleshed out, the top 10 CBSAs consisted of:
- Minneapolis-St. Paul-Bloomington, Minnesota-Wisconsin with a -37.10 percent change in the foreclosure ratio
- Sacramento-Roseville-Arden Arcade, California with a -27.78 percent change in the foreclosure ratio
- Columbus, Ohio with a -20.02 percent change in the foreclosure ratio
- Tacoma-Lakewood, Washington with a -28.92 percent change in the foreclosure ratio
- Spokane-Spokane Valley, Washington with a -13.99 percent change in the foreclosure ratio
- Fresno, California with a -14.63 percent change in the foreclosure ratio
- Portland, South Portland, Maine with a -32.91 percent change in the foreclosure ratio
- Mount Vernon-Anacortes, Washington with a -22.98 percent change in the foreclosure ratio
- Bremerton-Silverdale, Washington with a -37.97 percent change in the foreclosure ratio
- Olympia-Tumwater, Washington with a -41.40 percent change in the foreclosure ratio
With these signs of recovery, there is some concern as to whether or not some markets, particularly in California, are getting too hot. Tom O'Grady, CEO of Pro Teck Valuation Services, says one must look at affordability in each community to better answer this question.
"Salary increases have kept affordability closer to historic norms, not ‘bubble’ territory of 2005-2007," says O'Grady. "Tight credit policy and low interest rates post-crash mean that the majority of loans that have been written since 2008 are of high quality and less likely to default. For these reasons, we do not believe that a ‘bubble’ is imminent."
In the bottom 10 CBSAs, six out of the 10 had a negative foreclosure ration percent change, while the remaining four experienced an increase in the foreclosure ratio percent. These CBSA included Killeen-Temple, Texas; El Paso, Texas; and Syracuse, New York.
