Foreclosure Have Devastating Effect on Home Prices
April 24th, 2008 by 
Joseph Smith
New reports are being issued showing that home prices across the nation are continuing to fall drastically as a result of the rising trend in foreclosure. The national median price of a single family home fell by nearly 9% from February of 2007 to February of 2008, with some of the areas with the lowest median home values also laying claim to some of the highest rates of foreclosure.
Las Vegas, Nevada, home to the highest metropolitan foreclosure rate in the country, saw median home values fall by an astonishing 25% year over year, to roughly 135$ per square foot. This marks a huge downturn in the market in Nevada, and is part of the reason prices on homes and foreclosures in Las Vegas are so cheap. However, the falling home values have led many investors to wonder just when any chance for buying a discount foreclosure will begin to gain value besides the savings from a sale.
However, this has also led to many bank lenders and homeowners looking to off their properties quickly, before prices fall even further. This is ironically contributing to the downward slide, as homebuyers are waiting out the lowest possible prices. However, buying in less ravaged areas could hold out a chance for investment value sooner than Las Vegas and similar areas.
