The amount paid for a home in Ohio dropped 2 percent in the main metropolitan areas since May of 2007. Foreclosure sale numbers lowered but the areas in Ohio stayed about the same during the recession. Prices dropped in areas where the subprime lending was thicker and a higher percent of sales were those of foreclosure homes in Ohio. The amount paid for those houses are always found to be lower than when a sales transaction is not forced.
The new legislation signed by President Bush is created to help the hundreds of thousands of homeowners who are now facing foreclosure. Foreclosure always drops property value in neighborhoods. The amount of foreclosures filed is two times more than it was previous.
April 2008 showed no improvement in the prices of Ohio foreclosure homes and May brought a decline of 2 percent. National prices also dropped since May 2007 at a drastic rate. The majority of areas showed a drop in what is being called the worst housing slump in the past 25 years. It is made worse by the fact that banks are cutting the lending after more than 450 billion dollars were lost to foreclosures and write downs.
The home prices in the United States will continue to fall and some companies may end up writing off over a trillion dollars in losses. This may be just the thing that will take out the larger financial institutions and cause a recession to become a second depression.
