It’s no secret that the real estate market is in a bit of a slump or even worse, but some cities are faring worse than others. The hardest hit cities are ones which have high negative equity. Negative equity means that more is owned on the home than its current market value. RealtyTrac has examined recent foreclosures and found the worst counties to own property in are, not surprisingly, some of the hot spots during the most recent housing boom.
Wayne County, Michigan the home of Detroit saw some unexpected and wholly remarkable property values during the boom, and it shouldn’t have come as such a shock when those values plummeted and many people found themselves with homes they couldn’t afford.
Clark County, Nevada, the county which receives a large part of its income from the gaming industry, saw fortunes being gambled on property and eventually lady luck turned her frown upon this area.
Maricopa County, Arizona looked like the darling market to many, at a point during the boom civil servants could often not afford to purchase homes in downtown Phoenix and had to move to the suburbs or surrounding communities. There was no where for this market to go but down.
Los Angeles County, California has been hit very hard by the current state of affairs in real estate and this shouldn?t come as a shock to anyone, this trend-friendly town is used to watching fads come and go and the real estate craze wasn?t anything new to these residents.
It was hard to see at the time, but with 20/20 hindsight it?s easy to see why some of these regions were just too good to be true.