Even with recent upticks in the economy, the housing market is still struggling, as home values are down 34 percent from their peak and continue to decline, according to the Atlantic Cities.
The crisis in the housing market continues to be uneven across the U.S., according to the Atlantic Cities. Home prices in Detroit, Cleveland, Las Vegas and Atlanta are below what they were in 2000, and home prices are 50 percent above 2000 levels in San Diego, Los Angeles, New York, Boston, and Washington, D.C.
The Housing Misery Index, developed by economist and Atlantic Cities contributor Jed Kolko of Trulia, is another way to track the housing market. The index analyzes the change in home prices from their peak until today from Federal Housing Finance Agency and the percentage of mortgages that have been foreclosured or are extremely delinquent, according to the article.
Large price decreases have led to more underwater borrowers and less wealth in households, according to the article. Those factors put a drag on the economy and hurt the housing market. Defaults and foreclosures injure consumer confidence in the housing recovery, and foreclosures produce problem for people who lose their homes, and their neighbors as well.
The four states with the highest level of housing misery are Nevada, Florida, Arizona and California. Each of those states has seen big price drops and a lot of foreclosures, according to the Atlantic Cities.
Read the entire article at AtlanticCities.com.
EMAIL: [email protected]