Economists are expecting the high levels of bank foreclosed properties and tax deed properties to continue to depress the housing market of Georgia in 2011. They stated that the housing sector will continue to be under pressure from the amount of unsold foreclosed properties in the market just like last year.
Foreclosed properties, including Decatur foreclosures, GA, will remain high in the region in 2011, with increased number of homeowners behind in their monthly mortgage payments recorded during the last quarter of 2010. According to local economists, the 11,000 homeowners in the state that received foreclosed property-related filings in December of last year will bring the number of foreclosures higher in 2011.
The December figure for filings means that one household out of every 365 is under foreclosures in Georgia. In areas like Chatham County, foreclosure-related notices also spiked during the last month of 2010. The county issued default notices to a total of 252 households last December, which means that one household out of every 462 in Chatham was distressed as of last month. Despite the not-so-positive prediction for the state’s housing market, economists stated that the industry will hit bottom this year.
The good news, analysts have stated, is that it will not get any worse, because the market is already at its lowest level. The main problem, economists further added, is that the supply of bank foreclosed homes and tax deed properties are so high that it will take a few more years before these unsold residential properties are completely absorbed by the market. Until then, economists expect the housing sector to remain depressed.
However, most economists in the state believe that there will be growth in terms of the labor market, with unemployment projected to somewhat diminish in 2011. They did caution, however, that any improvement in foreclosure or in the job market should not make people over optimistic.
They stated that the housing market and the state’s economy are both in poor condition right now that any upward change in number will be minimal and will not mean that both indicators are recovering. They also expect new home construction to improve despite the high number of foreclosures and tax deed properties that remain unsold.
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