Despite Cheap Fixer Upper for Sale Numbers, Louisville Rated High
Cheap fixer upper for sale homes and low-priced distressed residential properties are weighing down the housing market of Louisville, Kentucky, just like most metropolitan areas of the U.S. However, analysts believe that the metro region will be among the first to recover economically, with its housing industry also tipped for a faster recovery.
According to analysts, the recovery of the metro area has nothing to do with the number of Louisville foreclosures. In a study conducted by think tank Brookings Institution, Coral Gables, in Florida, and Las Vegas, Nevada, two of the metros hardest hit by the recession and the foreclosure crisis, ranked high in terms of recovery. Analysts explained that a region's recovery is dependent on several other factors and is not exclusively tied to its housing market.
According to them, aside from the number of Kentucky foreclosed homes, unemployment data and gross metropolitan product are also factors in evaluating whether a metro region will recover faster than other metropolitan areas. Economists have stated that regions that will experience slower recovery than others are those that are highly dependent on the automobile industry for their jobs and also those regions that have experienced drastic fluctuations in housing prices, with real estate reaching record highs during the boom and plummeting to record lows during the crisis.
Market analysts have observed that the continuous rise in the number of foreclosed cheap fixer upper for sale and distressed properties is hindering the housing industry from achieving a sustained recovery. The sector, analysts stated, is trailing industrial production and retail sales, both of which already showed considerable improvements since the fourth quarter of last year.
Meanwhile, the report from Brookings has revealed that several metro areas in Texas have performed well economically both during the recession and the period right after that. Along with Hartford, Connecticut, the Texas metro areas of McAllen, Austin and San Antonio have all been cited at the study as strong performers during the downturn and right after the recession ended. All four regions have relatively low numbers of foreclosed real estate for sale. They also did not experience drastic ups and downs in home prices, analysts have observed.
Market experts have stated that the number of cheap fixer upper for sale properties in a region is not the only factor in gauging whether that area will recover faster than other regions. They stated that employment, major industries and housing market history also influence the speed by which a metropolitan region can recover.