High Foreclosures, Cheap Real Estate a History Lesson says Dymphna Boholt

Dymphna here, just got finished doing some exhaustive research on some real estate in California.

Last spring, The United States of America began going through a bit of a crisis surrounding home loans. Apparently, the pompous Americans thought they could go around buying homes, even though they had no means to pay for them; not to mention the immoral practices of predatory lenders to actual make loans to these people. Anyway, worsening financial situations for already strapped middle class Americans, led to a rush of home foreclosures. The wave of sudden defaulted home loans swept the mighty US off its feet, but left some great opportunities for buying real estate.



According to Dymphna's Property Research the hardest hit state was California. California was suffering a localized recession for months prior to the collapse felt nationwide. So there are a lot more properties that were foreclosed on, and have been on the market for a lot longer. This means the time is ripe to buy up some property and hold on to it, because it is only a matter of time till the US economy comes back.



Certain cities were hit harder than others. What happens is businesses go under, or move to other areas where the cost of doing business is cheaper. This leaves whole cities in turmoil, forcing residents to go on welfare or leave the area, leaving homes abandoned.



Stockton, California leads the entire country with foreclosures with 1 in 31 houses foreclosed on. This is an unbelievable stat! That leaves a lot of abandoned properties on the market that can be swept up at unbelievable prices. The median home price was once over $500,000. Now, the median home price is down to $355,000



Sacramento, California didnʼt make the list of most cities with the most foreclosures, it tops a different list. The median home price in Sacramento is down 29%, leading the entire nation with the lowest drop in home prices. If you were going to buy property in the United States, Sacramento is the city you should look into.



Among other cities with high foreclosures and lower home prices are: Riverside, Bakersfield, and Oakland. Looking at the state of the US economy, and more locally the California economy, land and property are the investments of choice. Americaʼs hard times will eventually lend, leaving smart real estate investors very wealthy in the end.

So there you go, I dymphna boholt, have given you a tiny history lesson and an insight into the Californian realestate crisis.