Trend of Foreclosed Home Auction Prices in North Texas
Despite the growth in foreclosed home auction inventories in the Dallas-Fort Worth area, a real estate study released this week stated that Fort Worth and Dallas are among U.S. cities where the prices of homes and foreclosed home auction properties are not likely to fall as steeply as in other cities.
According to the study, there is an approximately 4 percent risk of house prices going down further in Dallas in the next two years. Meanwhile, the risk in Fort Worth is higher at nearly 6 percent.
The risks for the two cities are extremely low compared to the nationwide risk level of nearly 66 percent. The study said that in 50 of the nation’s biggest cities, the risk for house prices going down further in the next two years is 65.5 percent.
In 45 large metro areas across the nation, the risk of home prices going down further increased in the first quarter.
The risk level in Dallas in the first quarter increased from the 2.5-percent level in last year’s first quarter while the risk level in Fort Worth increased also from the 2.5-percent level in last year’s first quarter.
Across the nation, the cities with the highest risks of house prices going down further are Riverside, Los Angeles and Miami, with all three cities having nearly 100 percent chance of house prices going down further in the next two years.
The cities with the lowest risk of house prices falling further are Cleveland and Pittsburgh.
Unlike other cities where extremely high prices during the boom caused their housing markets to collapse, soaring unemployment rates caused the housing market in North Texas to decline. The flood of foreclosed home auction properties pushed down home prices to their lowest levels.
In the past two years, home prices and foreclosed home auction prices fell by more than ten percent in the two North Texas cities.
In the first 7 months of this year, foreclosure filings in North Texas continued to grow by 20 percent compared to the same period in 2008. Over 64,000 foreclosure actions have been filed in Dallas in the first 5 months of the year. Many of these eventually went on to foreclosed home auction listings.
According to another Texas real estate study, nearly 5 percent of homeowners with home loans in Dallas were behind in their monthly payments by three months or more.
In the first 6 months of this year, over 9,000 housing units eventually entered foreclosure listings and foreclosed home auction inventories in North Texas.
