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 August 28, 2007

Housing Flips Blamed for California's Market Decline
The Inland Empire region of Southern California is currently suffering from one of the highest foreclosure rates in the country. Who is the culprit? House flippers. House flippers are those who purchased homes to resell them for a quick profit. However these housing flips are increasingly heading for foreclosure.
The toll that this unfortunate trend is taking on the area is becoming more and more visually apparent. A growing number of homes currently sit vacant and neglected, causing their bargain prices to drag down the value of their neighboring homes: many of which are still occupied by their homes.

If the foreclosed properties do get new residents, even if only temporary, the lack of maintenance and care is apparent. Many home owners that purchased their dream homes are finding themselves "upside down" on their home loans. This means that they owe more on their home than it is currently worth on the market; as a direct result of declining property values.

Real estate professionals state that California's history of high population growth will help the state bounce back from the current situation.

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