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Headlines – Week of January 29, 2012
February 3, 2012
5 Housing Markets Expected to Outshine All the Rest
Inman News recently released a report highlighting metro areas that are expected to “outshine many other markets in real estate performance this year.”
Inman searched metro areas with populations over 150,000 to find where real estate sales volume is rising, job markets are growing, foreclosure activity is low, sales prices are appreciating, and home affordability is at high levels.
The following are the metro areas topping the list, including the third quarter 2011 median sales price and the percentage change in sales price year-over-year.
1. Raleigh-Cary, N.C.
Median sales price: $224,300
Median sales price change year-over-year: 7.3 percent
2. Wichita, Kan.
Median sales price: $120,900
Median sales price change year-over-year: 5.5 percent
3. Rochester, N.Y.
Median sales price: $123,400
Median sales price change year-over-year: 1.4 percent
4. Des Moines-West Des Moines, Iowa
Median sales price: $157,900
Median sales price change year-over-year: 0.8 percent
5. Chattanooga, Tenn.-Ga.
Median sales price: $128,700
Median sales price change year-over-year: 7.3 percent
To see the full article and the other cities that made the top ten list click HERE
MSAs with the Fastest Rising Median List Prices
In related news, Inman published a table from Realtor.com data showing the Metropolitan Statistical Areas (MSAs) with the fastest rising median list prices in 2011. The data comes directly from actual listings posted on the site by 933+ multiple listing services throughout the country.
Note that the Fort Myers-Cape Coral MSA ranks number three on the list with a compound growth rate of 1.73%.
MSA January 2011 December 2011 Compound Growth rate
- Miami, FL ($200,000 $265,000) – 2.59%
- Boise City, ID ($128,000 $154,900) – 1.75%
- Fort Myers-Cape Coral, FL ($190,000 $229,375) – 1.73%
- Punta Gorda, FL ($150,000 $179,000) – 1.62%
- Daytona Beach, FL ($154,900 $179,900) – 1.37%
- West Palm Beach-Boca Raton, FL ($188,894 $219,000) - 1.35%
- Naples, FL ($315,000 $365,000) - 1.35%
- Washington, DC-MD-VA-WV(DC) ($320,000 $369,000) - 1.30%
- Sarasota-Bradenton, FL ($209,000 $241,000) - 1.30%
- Grand Rapids-Muskegon-Holland, MI ($119,900 $137,000) - 1.22%
CoreLogic Releases 2011 Home Price Statistics
CoreLogic recently released its December Home Price Index (HPI) report. Including distressed sales, home prices in the U.S. decreased 4.7 percent in 2011 compared with December 2010. Florida, however, fared a bit better than the national average with a price decline of only 3.3 percent. According to CoreLogic, 2011 was the fifth consecutive year for a decrease in the HPI.
The HPI also calculated price changes if distressed sales are excluded. Nationally, prices declined just 0.9 percent after backing out non-homeowner sales in 2011. Florida matched the national average with a 0.9 percent drop for the year. Distressed sales include short sales and real estate owned (REO) transactions.
The report also shows that national home prices decreased 1.4 percent in December compared to the month before if they include distressed sales – its fifth consecutive monthly decline. However, national home prices actually rose 0.2 percent month-to-month if distressed sales are backed out of the equation. It’s the first time the price non-distressed sales rose for the month since July 2011.
Highlights as of December 2011
• Including distressed sales, the five states with the highest appreciation were: Montana (+4.4 percent), Vermont (+4.0 percent), South Dakota (+3.1 percent), Nebraska (+2.5 percent) and New York (+1.7 percent).
• Including distressed sales, the five states with the greatest depreciation were: Illinois (-11.3 percent), Nevada (-10.6 percent), Georgia (-8.3 percent), Ohio (-7.7 percent), and Minnesota (-7.5 percent).
• Excluding distressed sales, the five states with the highest appreciation were: Montana (+7.7 percent), South Dakota (+3.5 percent), Indiana (+3.3 percent), Alaska (+3.1 percent), and Massachusetts (+2.9 percent).
• Excluding distressed sales, the five states with the greatest depreciation were: Nevada (-9.7 percent), Minnesota (-5.2 percent), Arizona (-4.9 percent), Delaware (-4.2 percent) and Michigan (-3.5 percent).
• Including distressed transactions, the peak-to-current change in the national HPI (from April 2006 to December 2011) was -33.7 percent. Excluding distressed transactions, the peak-to-current change in the HPI for the same period was -24.0 percent.
• The five states with the largest peak-to-current declines including distressed transactions are Nevada (-60.0 percent), Arizona (-51.9 percent), Florida (-50 percent), Michigan (-43.7 percent), and California (-43.5 percent).
Posted by Scott R. Lodde
Hotel Selling’s ‘S’ Factors: Six Serious Selling Sins & Sound (Rx) Solutions
February 3, 2012
by Ed Iannarella
January 2012
1. SKIPPING RAPPORT: Would we BBQ chicken without 1st greasing the grill? No way! Too sticky a situation. Same applies to all other aspects of selling without 1st establishing rapport. For most selling situations, whether we like it or not, whether it’s fair or unfair, a good rapport is the single most important part of the sales process. We naively think of closing as wearing that label, but study after study shows that human connection reigns supreme in selling. Did you know that of all customers who left for a competitor, 80% of those said they were satisfied with their previous purchase (source: Harvard Business Review)? So, satisfaction does not translate into loyalty. But bonding emotionally is at the heart of rapport and loyalty. That same Harvard source reports that 97% of loyal customers are loyal for life! Although there certainly are other reasons people buy from us especially in a difficult economy (e.g., discounts we offer, their addiction to our brand or location, they literally must have our product/service due to a command from above or a demand from their client base, etc.), people typically “buy” us before they buy what we’re selling. Buyers like to buy from people they like, feel comfortable with, and/or trust. This is the essence of rapport.
Let’s recognize that although rapport building is generally taught as the 1st step in a sales call, it must be an ongoing process throughout the entirety of any sales interaction. Yes it’s often difficult to do with some prospects who are just different from us or who won’t allow us to bond for any number of reasons. Sometimes, lack of time inhibits our ability as well. Researching your prospects (via Linked In, social media, organizations’ websites, addictomatic.com, and even listening to vocal clues about prospects from their voice mail messages) can often offer opportunities that may give you an edge to connecting with them. As other studies tell us, words (i.e. verbal communication) are the weakest way to connect with others. This tells us we have to master the other 2 “V’s” of communication: Visual (body language) and vocal (voice related) clues that comprise 93% of our effectiveness as salespeople (check out FAQ’s on nlp.com).
2. SUBSTANDARD “ASKING” SKILLS: As doctors (and great salespeople) all know, “prescription” (solutions) without proper diagnosis (qualifying) is malpractice (poor selling).
To get what we want from someone (like a prospect with roomnights), keep these principles in mind: We have to ask specifically by stating exactly what we want, do it quickly, and ask at the right time (in the selling cycle and when the prospect is ready, willing, and able). We must also learn to ask for the same thing in different ways on occasion, and always ask someone who can actually help us (decision makers/influencers)! Quick tip: Never ask, “Are you the decision maker?” If they are, they may think you’re challenging their authority, and if they’re not, they may feel humiliated. Much better is to ask, “Who else, besides you, is involved in the decision-making process?”
3. SALES PRESENTATION “ERRORS OF OMISSION“: We’re all sometimes guilty of “errors of commission,” things we did wrong such as mentioning too many features, addressing the wrong needs, and taking too long to address the correct needs. However, far more frequent are “errors of omission,” things we neglected to say or do. Here are some of the most common (and dangerous) errors of omission: not addressing the prospect’s most important needs first (or worse yet, ever!), not directly comparing ourselves to other prospect options during our presentation, missing prospect “signals,” passing on the chance to validate our worth, and not asking for confirmation from our prospect before closing.
Diffuse stress associated with a prospect’s most important needs by tackling them before other, less critical needs. Don’t shy away from direct comparisons. Instead, “Dare to compare!” We owe it to our employers and fellow workers who depend on our revenue-generating skills. Remember to point out your product (amenities/services) and your personal points of differentiation (what makes you different/better as handlers of their account). Be sure to include your “USA’s”: Unique Selling Advantages© especially if the competition offers similar things. Notice prospect signals by closely observing them through active listening to their tone as well as watching their body language. Validate during your presentation by offering 3rd party testimonials (what others said about you/your hotel: provide visual proof later via e-mailing attached testimonials) as well as by mentioning any awards you/your property/brand has recently won. Verify prospect receptiveness on occasion during the presentation (How’s that sound so far?) and do so at the end of this “meeting needs” step before quoting rates and attempting to close.
4. SELF-DESTRUCTIVE LAST IMPRESSION: We’ve all heard about the critical 7 seconds of an initial prospect interaction, but equally important is the way we exit (a phone call, an outside appointment, a site tour, a group presentation, etc.), as it’s pretty easy to undo an otherwise good call with a weak parting handshake, a lack of eye contact, or a far-too-casual “See you ‘guys’ later.”
Practice a sincere “Thank you for your time” and a reasonably firm handshake, or if you dare to emulate me, “mirror” their handshake to establish “physical commonality.” Sound too “New Age” for you? Call me for a 1 minute explanation or purchase/download “Reading People” by Jo-Ellan Dimitrius and delve into the area salespeople MUST master to be at the top of their profession: Neuro-Linguistics (NLP).
5. SLIGHTING (OR TOTALLY) IGNORING MENTORS: There are 2 basic ways to learn anything (including how to be the best salesperson we can be): 1) experiential which is learning from our mistakes or 2) through being mentored. The 1st (AKA trial and error) can teach us things we’ll never forget, but all too often that’s due to the high price we pay in excessive time, money, and hardship required. We are taking the test 1st, and learning the lesson second. Being mentored saves us time and usually reduces the pain of making unnecessary mistakes. Here, we learn the lesson 1st (from others who have excelled at the task and are willing to help us succeed), and then take the test second. Sadly, so many of us still choose to do things the hard way, only to find that there are plenty of painful experiences for us compliments of prospects, clients, co-workers, and bosses. Ouch! Why be a grouch? Be a “mentee!”
If you’re lucky enough to have access to live mentors, don’t think twice. Just say yes! These can be supervisors at your hotel, elsewhere in your management company, or at the brand level (if applicable) who can make themselves accessible to you on a consistent basis. Ask 100 questions, take lots of notes, try their suggestions on for size ASAP, and report back for a critique to discuss what worked and what didn’t. Ask your mentor if you can do anything for them in return. But what if no actual (or willing) mentors are available? All is not lost especially with recent enhancements in technology and communication. Simply look for virtual or surrogate mentors to fill the niche. Available surrogate mentoring sources include CD’s from subject matter experts (surf the American Hotel and Lodging’s Educational Institute), live seminars or classes, webinars, and downloads (audible.com is great!). If you’re part of a chain, tap into your brand’s many e-resources. Remember that many programs are archived in case you were unable to “attend.” And speaking for other live mentors, we can’t compete with the 24/7 availability factor offered you by CD’s, archived sessions, and downloads. Find your mentors and start your learning engines right now. Learning isn’t a spectator sport!
6. SHOWING LITTLE OR NO RESPECT: Even if we have a great product or service to sell, or if we have excellent sales skills, we may finish last in getting a prospect’s commitment if we’re initially perceived as selfish or uncaring before or during a sales call. We may not even get to do a call if we seem disrespectful.
Begin with the end in mind. When calling someone to qualify, to present, or to simply introduce yourself, try this question (or a close variant) immediately after you identify yourself: “Is this a good time or a bad time to speak with you about your …(upcoming conference/business travel, hotel needs, etc.)?” Some prospects will say it’s OK, but due to suspicions about salespeople (compliments of our selling ancestors back in the last century), most will tell you it’s not a great time and even give you a reason or 2. This is potentially a good thing for you as you reply with, “No problem. I respect your time and that’s why I asked. When would be a better time for us to speak?” Though not always, prospects frequently will then offer an alternate time frame (and despite not verbalizing it, they will be pleasantly surprised at the respect level you demonstrated and that’s about as good a 1st impression as you can expect!). And, by the way, you went from a cold call to an appointment call (ending with your “OK great. I’ll try you Thursday after 1:00 and thanks for your time, sir.”), and your prospect set the appointment! Remember that you “never get a second chance to make a first impression.”
About the author:
Ed is President of Stonehenge Consulting Group and an affiliate of the Alliance Group. Stonehenge provides hotel sales performance and top line revenue consulting. Ed is a frequent speaker/trainer at national brand and management company conferences, HSMAI chapters, and U.S. Navy-operated hotels. People from over 30 countries have attended his U.S.-based selling workshops, and he has delivered hotel sales training in 8 countries.
Headlines – Week of January 22, 2012
January 27, 2012
Florida Ranked No. 5 nationally as ‘Best for Business’
According to the Tax Foundation’s State Business Tax Climate Index, Wyoming, Florida and Texas rank among the 10 best states for taxes on business, while companies in states like New York, New Jersey and California have a far less pleasant tax climate.
The Tax Foundation says it looks at dozens of state tax provisions to create the ranking –a single easy-to-use score that measures each state’s tax climate against every other state. While some similar studies focus on residents’ tax burden they pay each year, the Index focuses on how a tax system enhances or harms a state’s businesses.
The 10 best states in this year’s Index
1. Wyoming
2. South Dakota
3. Nevada
4. Alaska
5. Florida
6. New Hampshire
7. Washington
8. Montana
9. Texas
10. Utah
The 10 lowest ranked states in this year’s Index
41. Iowa
42. Maryland
43. Wisconsin
44. North Carolina
45. Minnesota
46. Rhode Island
47. Vermont
48. California
49. New York
50. New Jersey
A copy of the latest report is available HERE.
Population Projections and the Effect on Real Estate
Lawrence Yun, Chief Economist at the National Association of Realtors (NAR) recently wrote a blog posting entitled Population Projections: United State and the World in which he tried to explain another reason why real estate prices have dropped in the recent past.
In the U.S., he ignores the claim that the large number of people retiring and an eventual dying off of the baby boomers will mean less housing demand in the future since the broader population are not just the baby boomers.
Every year about 3 million additional people live in the U.S. The projection by the Census further calls for more people for the foreseeable future with the total tally rising to 436 million by 2050 from the current total of 311 million people. Such growth assures steady housing demand.
While he admits it is hard for even a smart economist to understand what all this means, demand for real estate is automatically created.
Below is an interested chart from the posting on global population growth projections.
Click to Enlarge
Homeowners by Age
In another interesting blog posting, the NAR noted that in 2000 (a very normal housing year without a bubble), 67 percent of Americans lived as a homeowning household. The easy credit conditions that followed fueled home buying beyond normal and the ownership rate rose to 69 percent. The subsequent housing bust brought the ownership rate down to today’s 66 percent.
Click to Enlarge
Not all age groups had similar experiences throughout this cycle. The very young were mildly impacted. The very old did not on average feel any pain. The big impact was felt among people in their 30’s, who have much the same homeownership rate today as back in 2000, well before the bubble. It is also this group where there is potential for re-entering into the homeownership market in the near future.
International Buyers Help Miami Break All-time Sales Record in 2011
Accord to a recent article WORLD PROPERTY CHANNEL, Miami was the fastest rebounding residential property market in US in 2011.
According to the Miami Association of Realtors and the Southeast Florida Multiple Listing Service (SEFMLS), total 2011 sales, including both condominiums and single-family homes, in Miami-Dade County were 24,929, up four percent from the 24,025 in 2005 and 46 percent from 17,068 in 2010. Year-end closed sales of condominiums surged 54 percent, from 9,760 in 2010 to 15,009 in 2011. Total single-family home sales increased 36 percent from 7,308 in 2010 to 9,920 in 2011.
Unlike other markets throughout the U.S., Miami has recovered faster and stronger than expected and is poised for further growth and double-digit price appreciation in 2012.
International buyers and investors continue to play a major role in boosting market performance in Miami, according to the Miami Association of Realtors. Miami is the top area in the U.S. for international real estate buyers. These buyers from worldwide markets will continue to strengthen the Miami market long into the future.
The inventory of residential listings in Miami-Dade County dropped 39 percent from 24,278 in to 14,087 over the last year. Currently, there is a 4.9-month supply of condominium inventory and a 5.8-month supply of single-family homes in Miami-Dade County, reflecting a very healthy marketplace. Total housing inventory nationally fell 9.2 percent at the end of December.
Heightened demand for bank-owned (REO) properties and improved processing of short sales has resulted in rapid absorption of distressed listings and price appreciation. In December, 54 percent of all closed residential sales in Miami-Dade County were distressed, including REOs (bank-owned properties) and short sales, compared to 59 percent in December 2010 and 56 percent the previous month. Contrary to a year ago, there are now more short sales being transacted than REOs.
In Miami-Dade County, 63 percent of total closed sales in December were all-cash sales. Cash sales accounted for 42 percent of single-family and 77 percent of condominium closings. Nearly 90 percent of international buyers in Florida purchase properties all cash.
Nationally, all-cash sales accounted for 29 percent of transactions, reflecting the stronger presence of international buyers in the Miami real estate market.
Posted by Scott R. Lodde
Headlines – Week of January 15, 2012
January 22, 2012
U.S. Hotel Values to Increase 25% in 2012
According to a bullish report in the 2011 edition of the HVS U.S. Hotel Valuation Index, the U.S. lodging market experienced strong demand recovery throughout 2011. Strong occupancy growth continued in 2011, as well as some initial recovery in average rates.
The transaction side of the business has increased considerably from the downturn witnessed in 2009 as numerous high-profile assets have come to market, and fierce bidding is commonplace among active institutional buyers and investors.
Highlights of the report include:
• Value for a typical U.S. hotel is forecast to increase by 28% and 25% in 2011 and 2012, respectively
• U.S. hotel values are projected to exceed 2006 peak levels by 2012
• Relative to the hospitality industry, investors aggressively re-entered the hotel market in 2011, and continue to do so now
• Hotel transactions in 2011 have involved larger and more expensive properties.
• Hotel capitalization rates and other rates of return have fallen to one of the lowest points in history — this is due to low mortgage interest rates, the large amount of equity capital chasing very few acquisition opportunities and the fact that there is huge upside potential in future NOI
• Las Vegas and Tampa are expected to register the most growth from 2009 (low point) to 2015
• San Francisco, New York City, and Oahu are expected to be the most valuable markets for hotel owners on a per-room basis by 2015
• On an annual compounded basis from 1987 to 2015, Austin, Texas; New York City; and Miami; have/are expected to exhibit the strongest yearly increases
• Markets with low risk but high return on investments are San Diego, New Orleans, San Antonio, and Seattle, based on market volatility analysis
• San Francisco leads the race to hotel value recovery
Florida soon could be the third most-populous state.
Florida had the nation’s third-largest population growth in the past year. The U.S. Census recently reported that Florida grew by 256,000 residents from April 2010 to July 2011.
Texas and California were the only states with larger growth.
The 10 States with the Largest Numeric Increase from April 1, 2010, to July 1, 2011
1. Texas 529,000
2. California 438,000
3. Florida 256,000
4. Georgia 128,000
5. North Carolina 121,000
6. Washington 105,000
7. Virginia 96,000
8. Arizona 90,000
9. Colorado 88,000
10. New York 87,000
Florida now has 19.1 million residents, making it the nation’s fourth most-populous state. The Sunshine State is within striking distance of surpassing New York in population. All it takes is an additional 400,000 residents.
If current growth trends continue, Florida could pass New York in population size in two years. New York added 87,000 people between April 2010 and July 2011.
Fed issues housing market white paper
The Federal Reserve Board studied the U.S. housing market to analyze existing problems and has suggested possible solutions.
The white paper, “The U.S. Housing Market: Current Conditions and Policy Considerations,” calls for increased lending to creditworthy homebuyers, and more loan modifications, mortgage refinancings and short sales to reduce the rising inventory of foreclosed homes and help stabilize the housing industry.
The Fed white paper says the current problem with mortgage credit “reflects not only a correction of the unsound underwriting practices that emerged over the past decade, but also a more substantial shift in lenders’ … willingness to bear risk.” However, the Fed says that fixing the current real estate market must not simultaneously repeat the mistakes of the past.
The Fed paper also addresses converting foreclosed properties into affordable rentals. Many real estate groups, including the National Association of Realtors (NAR) support any change that makes it easier for owner-occupants and small investors to get financing, such as opening the Federal Housing Administration 203(k) program to investors.
The NAR is concerned about proposed bulk sales of distressed properties, which could lead to greater losses for taxpayers and a negative impact on housing values.
Posted by Scott R. Lodde
Headlines – Week of January 8, 2012
January 20, 2012
Frommer Selects Sanibel Island as No. 1 Favorite Travel Destination
Sanibel Island is the number one travel destination in the world, according to travel guru Arthur Frommer, the mastermind behind Frommer’s guidebooks and budget travel magazine.
Frommer recently ranked his ten favorite places to visit and listed Sanibel first above destinations like Bali and Paris.
Sanibel Island residents are celebrating the top honors from such a respected travel writer.
The island has won many travel awards and high rankings, but this carries special weight because it is Frommer’s personal favorite.
On the web site Frommer noted, “Off the west coast of the Sunshine State, a few miles from Fort Myers, is this idyllic haven of white-sand beaches, condos whose seafront apartments are available for weekly rentals, excellent restaurants, good shopping and most important, the Ding Darling Nature Preserve, visited by thousands of birds of every species, who bask in the sun after diving for fish, and are one of the great natural sights of wildlife in America.”
The other destinations in the top 10 list include:
- The Island of Bali, in Indonesia
- Paris, France
- St. John in the U. S. Virgin Islands
- Cairo, Egypt
- Bonaire, one of the “ABC” islands of the southern Caribbean
- Yachats, the Oregon Coast
- Chiang Rai, Thailand
- New York City’s Greenwich Village (and its Off-Broadway theaters)
- Kenya
Click HERE to see link to NBC2 news video.
Click HERE to see the full article and list.
Foreclosures Take Twice As Long To Process Now As They Did In 2007
A recent article in the The Huffington Post it is taking twice as long for foreclosures to work their way through the process of selling or auctioning than it did in 2007.
In 2007, the average foreclosure process in America, from beginning to end, took 253 days, or about eight months. Today, according to LPS Applied Analytics, the average foreclosure takes 674 days. That’s a year and ten months, almost triple what it was four years ago.
The foreclosure epidemic is one of the main factors inflicting damage on the housing market, which has still not made up for the losses it suffered a few years ago when the real estate bubble burst. In neighborhoods across the country, foreclosed or vacant properties are distorting their local markets, dragging down the values of the surrounding houses and wiping out vast sums in homeowner wealth.
The ubiquity of foreclosures, and their depressing effect on housing prices, has been cited as both a symptom and a cause of the country’s persistent unemployment problem. Many homeowners enter default after losing their jobs — and on the flip side, as the Wall Street Journal recently noted, plummeting home values tend to trap people where they are, making it harder for them to move to other towns where employment opportunities might be more plentiful.
The conundrum is expected to get worse in 2012. New foreclosures climbed by about 21 percent in the third quarter of 2011, with a total of almost 1.33 million foreclosures underway by the end of September.
Analysts believe the volume of foreclosures will grow much greater this year as banks begin re-submitting documents that had to be discounted in the wake of the robo-signing scandal, when some of the country’s biggest lenders were found to have approved reams of mortgage paperwork without reading it first.
Experts have offered a range of predictions for when the market might touch bottom and housing prices will begin to rise again. Even the most optimistic forecasts don’t see a recovery happening until late 2012 or early 2013.
Ten U.S. Metros with Largest Drops in Real Estate Values
According to data from online real estate site Zillow, the top 10 U.S. metro areas with the greatest year-over-year median home-value declines, by percentage, from October 2010 to October 2011, were clustered in two regions.
The 10 metro areas, clumped in the Southeast and the far West, declined an average of 13.4 percent, from No. 1 Gainesville, Fla.’s 17.2 percent drop to an 11.8 percent decline for No. 10 Reno, Nev.
The chart-topping Gainesville, Fla., metro area’s 17.2 percent decline settled the area’s median home value to $111,300 in that time span.
Just 40 miles away, the Ocala, Fla., metro area, No. 7 on the top 10 list, showed a 12.7 percent decline in median home value, to $85,200. Nearby, Atlanta and Mobile, Ala., rounded out the Southeast metros on the list at No. 2 and No. 5, respectively.
The far West portion of the top 10 features six metros in a Pacific-leaning band that curves from No. 3 Medford, Ore., in the Northwest to No. 6 Tucson, Ariz., in the Southeast.
The Mobile, Ala., metro area, at No. 5, has the lowest median home value on the list at $78,200, and is counterbalanced by No. 9 Santa Barbara, Calif.’s highest median home value of $371,200. After Santa Barbara, Calif., the next highest median home value on the list takes a steep drop to No. 4 Chico, Calif., metro area’s $169,300.
U.S. metro areas clustered in the Southeast and in the far West experienced the greatest 2011 year-over-year declines in median home value, by percentage, according to Zillow data.
Ten States in the U.S. with the Highest Foreclosure Rates
A related article from Realtor Magazine ranks the ten states in the U.S. with the highest foreclosure rates in 2011. Most of the results weren’t a surprise, as the states that began showing signs of heavy foreclosures years ago continue to lead the pack.
As whole, U.S. foreclosure filings actually dropped from 2.23 percent in 2010 to 1.4 percent in 2011.
Nevada came in first again with 6 percent of its homes in some state of foreclosure during 2011. One out of every 16 homes in Nevada received a foreclosure filing. While down somewhat, this puts Nevada at the top of the list for the fifth consecutive year.
Arizona came in second, with 4.14 percent of its homes receiving a foreclosure notice, or one out of every 15 homes. In third was California, at 3.19 percent.
Michigan, Florida, and a number of other states still have significant foreclosure percentages, but AZ, CA, and NV are ahead by a large gap. These states fell victim to “building out in the sand”. The warm climates attracted many second-home and vacation-home buyers with new construction, high value appreciation, and seemingly close proximity to large urban areas.
The full list of the top 10 state with the highest foreclosure rates:
1. Nevada: 6 percent (1 in 16 housing units received at least one foreclosure filing in 2011)
2. Arizona: 4.14 percent (or 1 in 24)
3. California: 3.19 percent (or 1 in 31)
4. Georgia: 2.71 percent (or 1 in 37)
5. Utah: 2.32 percent (or 1 in 43)
6. Michigan: 2.21 percent
7. Florida: 2.06 percent
8. Illinois: 1.95 percent
9. Colorado: 1.78 percent
10. Idaho: 1.77 percent”
Posted by Scott R. Lodde