Why does this matter if you are not being foreclosed on? Because it shakes confidence in the entire housing market. Surveys I ran in CA and IL show that neighborhoods with higher foreclosure rates have scared consumers. Even controlling for income, education, race and other factors, including neighborhood factors, renters in high foreclosure areas are more cautions about buying a home and see the risk of foreclosure as being higher. Homeowners are less likely to take on a home improvement or repair. The collateral damage can be significant.
I will post more on this issue in the coming days, but this map (pulled from foreclosurepulse.com) tells quite a story...
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