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Foreclosures Driving These Cities to a Crash

Houston migration destinationOverall, the U.S. housing market has been strong, but in a few communities across the country, signs of weakness have begun to show. These communities may be at risk for a crash, GOBankingRates notes, even if the rest of the country isn’t, as their foreclosure rates outpace the rest of the country.

Peoria, Illinois is GOBankingRates’ number one city at risk for “turning ugly,” -15.9% 2-year home price change and a foreclosure rate of one in every 932 homes. Peoria has seen the biggest drop in home prices over the past two years of any city on the list. The average number of days houses are on the market and the percentage of homes for sale with price cuts are higher than the national averages. The percentage of underwater mortgages here is more than double the percentage nationwide. And the foreclosure rate is among the highest on the list.

Portsmouth, Virginia taking the GOBankingRates third spot, has the highest foreclosure rate of any city on the list, as well as the highest rate of underwater mortgages. One in every 730 homes in Portsmouth is under foreclosure, while 19.4% of borrowers hold underwater mortgages.

Bridgeport, Connecticut holds the second highest number of percentage of underwater mortgages on this list, as well as a foreclosure rate above the national rate. 26.9% of homes in Bridgeport are underwater, while one in every 1,453 homes are under foreclosure. House stay on the market longer in Bridgeport as well, an average of 102 days compared with a U.S. average of 66 days.

Florida has the highest number of cities with real estate markets that could be in trouble, followed by Illinois. Florida cities on the ranking include Orlando, where home price growth has been slowing. The percentage of listed homes with price cuts in Orlando is higher than the national percentage, at 21.2%. Additionally, the foreclosure rate in Orlando also is higher than the foreclosure rate nationwide, at 1 in every 1,328 homes.

About Author: Seth Welborn

Seth Welborn is a Reporter for DS News and MReport. A graduate of Harding University, he has covered numerous topics across the real estate and default servicing industries. Additionally, he has written B2B marketing copy for Dallas-based companies such as AT&T. An East Texas Native, he also works part-time as a photographer.

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