Where Housing Bust Hits Hard

Submitted by Ronald Tennant with Metrocities Mortgage:

Christian Science Monitor (05/21/08) P. 1; Trumbull, Mark
The housing slump has hit far-flung suburbs, exurbs and low-income and minority neighborhoods especially hard, with home prices generally holding up closer to city centers. Research shows a 1.3-percent drop in the median home price in downtown Tampa, Fla., for instance, but a 22-percent decrease in a ZIP Code 18 miles from the city core. Zillow.com's Stan Humphries says builders focused on new developments on the perimeter because they allowed them to quickly boost supply, but most home buyers want to live closer to the city. Experts note that rising gas prices also might be taking a toll, with a report conducted by the consulting firm Impresa on behalf of CEOs for Cities indicating a slowdown in residential appreciation when gas prices surpassed the $2-per-gallon mark. Experts attribute rising foreclosures in low-income and minority communities to mortgage lenders and brokers looking to areas where credit previously had not been readily available as a means of boosting loan volume to meet global demand for mortgage investments. They note that geography will play a part in federal assistance, with Congress considering a plan to provide funds to state and local governments to purchase and redevelop foreclosed homes and increase funding for community-based nonprofit groups.