Thursday, May 25, 2006

Another Reason Crime is Sky High

Indy wins again in the race for most foreclosures! Congrats to the leadership of this fine city. Could it be that this terrible economic condition causes the jump in crime?

I would bet yes, but I am not an ecomony man.

Irvine, Calif. – May 23, 2006 – RealtyTrac™ (www.realtytrac.com), the leading online marketplace for foreclosure properties, today released its first annual 2006 U.S. Metropolitan Foreclosure Market Report, which ranks the foreclosure rates of the top 100 metropolitan areas. This year’s report, based on data captured over the first quarter of 2006, shows Indianapolis, Atlanta and Dallas having the highest foreclosure rates among the nation’s largest 100 metropolitan areas. Cities in the Sun Belt and Rust Belt generally had the highest foreclosure rates in the first quarter of 2006, while cities in the Northeast and Gulf Coast documented some of the lowest.

RealtyTrac publishes the largest national database of pre-foreclosure and foreclosure properties, with more than 600,000 properties in more than 2,500 counties across the country, and is the foreclosure data provider to MSN Real Estate, Yahoo! Real Estate, AOL Real Estate and Knight Ridder Online.

“Indianapolis narrowly edged out Atlanta as the city with the highest foreclosure rate in Q1,” said James J. Saccacio, chief executive officer of RealtyTrac. “Most of the cities with the highest foreclosure rates have above-average unemployment rates and below-average home price appreciation. Unemployment is a major reason why homeowners stop making mortgage payments, and slow home price appreciation can make it harder for homeowners in default to refinance or sell to stop foreclosure.”

Saccacio added that other economic factors such as decreasing affordability, rising interest rates and speculative buying can also fuel foreclosures. He cited Jacksonville, Fla. and Las Vegas Nevada, both of which documented foreclosure rates in the top 10 despite below-average unemployment and above-average home price appreciation.

“Because of the high home prices in many areas, more home buyers have stretched themselves financially with creative, and often risky financing that involves adjustable interest rates, interest only and negative amortization loans” he said. “Home buyers with these types of loans are more susceptible to default and foreclosure when interest rates move higher.”

1 Comments:

At 8:29 AM, Anonymous Anonymous said...

There are studies that show a low economic turn is directly related to an increase in crime. People don't have to steal if they have a good job and house.

 

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