Foreclosures in Eau Claire County Remain High
Foreclosures in Eau Claire County in Wisconsin are rising. Analysts said if the trend would continue, property prices in the area might further go down.
The rate of foreclosure in Eau Claire County,
Wisconsin, seems to stabilize this year, but it remains high compared to foreclosure rates in the past several years. Market observers in the area expect the rising volume of foreclosed homes to drag down values of most properties in the county.
Records released by the county show that there were 180 foreclosed homes in 2007. It rose 38% in 2008 to 249 foreclosures. Last year, the number of foreclosed properties in the area further rose 26% to 314. So far this year, there have been 311 foreclosures. Some observers note that a few foreclosures are to be expected this month (December) so that total 2010 foreclosure in the county would be a record high.
Real Estate analysts based in the county said they have never seen the area’s foreclosures rise this high in the past. Most of them attribute the increase to adjustable rates after a three-year Real Estate bubble.
According to an economist and city council member, many foreclosed homes this year could be harder to sell. It was stressed that the purchasing power and even the buying sentiment of potential homebuyers in the county may already be weak.
It was said that the county’s Economic Advisory Committee would assess the local rate of foreclosure at the next regular weekly meeting. The council member hinted that if any problem is pinpointed, the council may urge and advice local lenders and businesses to acquire the vacant homes. However, at the moment, the city prefers to just look at the figures.
It is common for property prices to drop as the rate of foreclosures rise in an area. That is because as the number of foreclosed homes piles up, prices tend to get pressured and spiral downward. More homebuyers are also lured to instead consider buying foreclosed homes, which have significantly lower tag prices.
Eau Claire is a small county in Wisconsin. It has a relatively small population of about 94,000 as of the latest census count in 2000. In the past years, the county had low rate of foreclosure. But the trend is starting to increase especially in the last three years.
The county regularly auctions some of its foreclosed homes. Auction schedules are set twice every month, every other Tuesday at 11 in the morning.
For more news, visit ForeclosureConnections.com.
