Why It's Better to Live Near a Vacant House Than a Foreclosure

By HousingWire

| Posted Oct 21st 2011 11:30AM

Occupied properties in foreclosure drag down home values twice as far as vacant properties, according to the Federal Reserve Bank of Cleveland.

Researchers looked at data from 9,601 sales in Cuyahoga County between April 1, 2010, and March 31, excluding sales not done at arms length and acquisitions by county and city land banks.

Homes that sold within 500 feet of at least one vacancy were priced 0.8 percent lower. Sale prices on those homes with a delinquent homeowner within the same radius dropped 0.7 percent.

But an occupied, tax-current home that recently entered foreclosure lowered the sales price by 1.8 percent, according to the Cleveland Fed's white paper.

Read the full story at HousingWire.

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With spring home buying season around the corner, will you consider buying?
Yes. Affordability is at a 30-year high, and I should be able to qualify for a mortgage.	3077 (20.4%)
No, but I would if I could. Lending in my area is still tight, and I don't have that kind of cash on hand for a down payment.	5156 (34.1%)
No, I'm holding out for an even better deal.	2856 (18.9%)
Nope. It's a renter's life for me.	4013 (26.6%)

With spring home buying season around the corner, will you consider buying?

Yes. Affordability is at a 30-year high, and I should be able to qualify for a mortgage.

3077 (20.4%)

No, but I would if I could. Lending in my area is still tight, and I don't have that kind of cash on hand for a down payment.

5156 (34.1%)

No, I'm holding out for an even better deal.

2856 (18.9%)

Nope. It's a renter's life for me.

4013 (26.6%)

Reader Comments (1)

by sjk09s - October 22nd 2011 @ 11:41PM

I work in a foreclosure dept. About once a week we need to evict people that won't move. They haven't made a payment in one sometimes two years but still want to stay in "their" home basically as a squatter. People just don't get it. It really is not your home until it is completely paid off.

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