Thursday, June 18, 2009
Brookings Institution: TC Metro 8th highest REO
The Brookings Institution has released a report that states the Twin Cities Metro area has the EIGHTH HIGHEST percentage of Lender Owned (REO) properties in the COUNTRY.
The report states that the Twin Cities Metro (Referred to in the report as Minneapolis/St. Paul/Bloomington) has 7.63 REO properties per 1,000 mortgageable properties.
The interactive chart showing the REO properties in the largest 100 metro areas in the U.S. is here.
The links to the underlying data are broken, so there's no way to show where or how they've collected this data... so I toss this question out to our local Real Estate professionals: Do the numbers seem legitimate?
Here's some thoughts - - if it turns out the numbers are legit:
1. There will be more opportunities than ever for first-time buyers to purchase an affordable home in the Metro - although first-time buyers should be aware of the possible pitfalls involved in purchasing a previously foreclosed home. Before purchasing ANY home, a first-time buyer should speak with a Home Stretch specialist to make sure they understand the homebuying process.
2. House prices in the Metro will continue to have downward pressure as these properties make their way through the system.
3. There will be continued financial pressures on our local cities in relation to these properties: code enforcement, monitoring vacant properties, downward pressure on property valuations leading to lower tax receipts, etc.
ANY OTHERS? Feel free to share your thoughts in the comments.