By browsing the Internet for real estate news, one could forgive a bit of confusion because of the volume of contrasting comments. For example, I recently came across an authoritative article that informed me that the number of foreclosures was still increasing and property sales continued to fall in the United States. Well, there was no big surprise there. In reading this article, I learned that poor old Las Vegas continued to reign as the country&39;s foreclosure capital. I&39;ve also discovered that Texas, with a huge increase of 35% in February 2010, has won first place for the state, with the largest increase in the number of foreclosures. This second statistic is the one that really caught my eye because I had just read another article in The Washington Post entitled "How Did Texas Escape the Real Estate Crisis?" .
So how can an article claim that Texas has the unfortunate distinction of being the state with the highest increase in seizures, while another is greeting it simultaneously as a token of success?
The important thing here is that an increase of 35%, in a relatively small number, can result in a relatively minor increase in actual stocks. So, there were only 4 foreclosed homes all over Texas, and suddenly 4 other houses were appearing in that market, that would be a 100% increase – but there&39;s only 8 houses in total. On the other hand, a seemingly insignificant increase of 10% in a market of 1,000 foreclosed homes would actually result in 100 additional properties added to the inventory.
In this case, it appears that less than 6% of mortgage borrowers in Texas are about to go bankrupt or are approaching it. The national average is close to 10%. Nevertheless, a gain is always a gain, and 35% is not a small number. According to ForeclosureListings.com, this increase allowed Texas to record the highest monthly gain in the United States in February. By March, however, she had further retreated and Florida had dubious honor to know the highest percentage of foreclosures listings. In essence, numbers can be misleading and can be manipulated to reinforce or weaken an argument or point.
Whatever the way we look at it, it&39;s a very bad news. But it should be noted that any news, good or bad, can be presented in a way that makes things healthier, if not more, than it does. With this in mind, it is essential that those who are considering buying or selling a home in the current economic climate attach particular importance to local market research. It can be a difficult task, to decipher the reality of the fantasy. Any news, any advice from a real estate agent or the opinion of a savvy family member can provide a valuable assessment of the situation. But only a wide range of expert opinions and amateur forecasts will allow you to see the big picture and, hopefully, act accordingly.