The point I was trying to make is this. Foreclosure wise in a state like Kentucky you can find houses for 20 cents on the dollar all day long! A place like South FL it is still hard to get a house 80 cents on the dollar. As long as there is demand prices go up. But just as quickly in areas that have a slow down they fall. As for the stock market there is a big difference. Real Estate is a very slow moving market. There are no program traders and because most people need financing, banks do there homework on there lending policies to protect themselves and the consumer. And unlike the stock market that is there to raise capital for future business development (at any cost to the investor) people will always need a place to live. It is just a local business. If I remember correctly San Francisco was a bubble back in the day when housing slowed and prices just held up fine while most of the country suffered.
On the investment end of foreclosures there is another problem, liquidity! You can find better deals out side of the cities but in order to get rid of the property it may take years. So turn around time is a big factor. This is another reason strong markets stay strong. So it comes down to one place may have a high foreclosure rate or it may even get so bad that people may give houses away to get rid of the burden. Other places there is always someone to step up and buy the houses before someone else does.
I just took a class that spoke about the Real Estate market. The NAR stats are showing a future population shift from the northern states to the Sun Belt states. They expect the baby boomer generation to increase the Sun Belt population by 20 something percent in the next ten years and a loss of that population coming from the northern states. This is another factor for foreclosures in the north. These people are also at the peak of there earning cycle.
On the investment end of foreclosures there is another problem, liquidity! You can find better deals out side of the cities but in order to get rid of the property it may take years. So turn around time is a big factor. This is another reason strong markets stay strong. So it comes down to one place may have a high foreclosure rate or it may even get so bad that people may give houses away to get rid of the burden. Other places there is always someone to step up and buy the houses before someone else does.
I just took a class that spoke about the Real Estate market. The NAR stats are showing a future population shift from the northern states to the Sun Belt states. They expect the baby boomer generation to increase the Sun Belt population by 20 something percent in the next ten years and a loss of that population coming from the northern states. This is another factor for foreclosures in the north. These people are also at the peak of there earning cycle.
