Distressed Properties for Sale Remain Unsold in Dalton As Values Drop

Big supplies of distressed properties for sale continue to flood the market of Dalton, Georgia, but realtors reported that majority of them remain unsold for several months. They also stated that the Whitfield County area has been one of the hardest hit locations in the region by the economic recession and the housing market crisis.

Other areas in the state also have problems with distressed properties, like foreclosures in Savannah, GA, and in other metro areas of the state. However, real estate analysts reported that the impact of foreclosures and plummeting home values is not as heavily felt in other regions as it is in Dalton. Last year, prices of residential properties in the city declined by almost 10%, marking the third year in a row that prices have tumbled in the area at such a large margin.

Although bank foreclosures in Georgia are not as numerous as other foreclosure hotbeds in the U.S., certain areas of the state are still forced to cope with the wide-ranging impact of declining property values in their neighborhoods. In Dalton, local officials are worried that the continuous drop in property values will drain the tax revenue of the city and create massive financial troubles.

As the number of distressed properties for sale rises, values of homes decline and the area’s tax digest declines along with these values. Officials in Dalton have estimated that the area’s tax digest has fallen by nearly 10% last year. Overall, Whitfield County is said to have already lost more than $300 million last year compared with 2009.

Local financial reports showed that the overall tax digest of the region has plummeted, with values of real properties, personal properties and motor vehicles also declining. With the entry of bank sale homes and foreclosures into the market showing no sign of abating, the community has been forced to use its reserves and has even asked workers to take leave without pay for the current year.

The local government has already launched a comprehensive analysis of the condition of the area’s housing market and how the impact of distressed properties for sale can be countered. Local home statistics showed that the prices of houses in Dalton have declined continuously in the last four months of 2010.