Housing Recession Hits California and Nevada
August 29, 2007 (PRLEAP.COM) Business NewsCalifornia and Nevada are experiencing housing recessions behind Michigan, which has some of the worst real estate markets in the nation, according to new reports by Housing Predictor.
Lawmakers in Ohio, Maine, North Carolina and Minnesota have already passed new laws to aid those under going foreclosure as a result of the subprime loan melt down. But in California, which leads the nation in many other areas the housing market is estimated to under go more than 500,000 foreclosures as a result of the subprime crisis and little has been done to help Californians under going foreclosure.
Housing Predictor forecasts more than 250 local housing market futures in all 50 U.S. states and regularly updates its forecasts.
"With record levels of foreclosures and more coming California homeowners, housing markets and economic growth are all at risk," said Center for Responsible Lending California director Paul Leonard. "The state should lead efforts to reduce foreclosures, help borrowers and reduce risks for new subprime loans."
Lawmakers in many other states are also examining ways to help home owners facing foreclosure, including New York, Massachusetts and Colorado. But in California and Nevada, where foreclosures are approaching record numbers lawmakers have failed to come up with a program for assistance.
Housing Predictor forecast in early June that more than 2-million homes will be foreclosed as a result of the subprime loan crisis. The Fed is widely expected by economists to cut the prime lending rate in September.
The California housing market is now under going double digit depreciation in some areas, particularly in Southern and Central California, where the subprime loans were most plentiful. One out of seven homes are under foreclosure in Stockton, located in the central valley.
In Las Vegas, Nevada, which experienced 48% appreciation on average in one year alone during the housing boom, prices are falling and nearly half of all homes listed for sale on the market are vacant. Las Vegas led the nation in subprime loan activity for any metropolitan area.
Get the latest on your market forecast and search real estate listings and foreclosures at http://www.housingpredictor.com