Foreclosure Ravages Connecticut Cities
June 18th, 2008 by 
admin
The rising tide of foreclosure is obviously still wreaking havoc in many cities across the nation. In Connecticut, the hardest hit by the housing crisis is Windham County, with foreclosure filings that have reached 23 out of 1,000 homes. Statewide, foreclosure rate has soared by 40 percent compared to last year.
Local residents are worried about the current real estate market condition. As it is, the inventory of homes for sale has climbed steadily with not much buyer in sight. If this keeps up, home prices can be expected to decline as a result of the sluggish home sales. The economics of this situation is simple – too much supply and not much demand. According to the Warren Group, median home sale prices statewide have already declined by 9.8 percent as of April.
In addition to this, the locals are also concerned about these troubled homeowners facing foreclosure. With the scarcity of vacant apartments and not to mention, the high rents, these families will have difficulties finding a place they could move to.
Compared to other states such as Michigan, Nevada, Florida and California, Connecticut certainly has it easier. Although the number of foreclosure homes has steadily grown in the past year, these properties are scattered across different neighborhoods.
And it seems like these foreclosure problems are not enough. The state is also faced with problems related to nationwide recession. If prices of fuel and food continue to rise and job losses become rampant, many families will find themselves struggling to make ends meet. The northeast portion of Connecticut has actually suffered much from the loss of thousands of defense and manufacturing jobs. Obviously, all these factors could worsen the foreclosure dilemma.
The only positive news is that foreclosure homes are selling at bargain prices and investors are flocking the market, hoping to enjoy great incentives and discounts.
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