According to an article in Dallas Morning News, as the foreclosure crisis presses on, home prices have continued to decline. Nationwide, the foreclosure crisis has caused home prices to fall 13.3 percent below where they were last year. Fortunately, Dallas-Fort Worth has faired better than the rest of the country.
The article said:
"Dallas-Fort Worth home prices fell by a scant 1.6 percent from a year ago in the latest housing market measure."
The foreclosure crisis has affected the values of homes in Dallas-Fort Worth, making it difficult for homeowners to sell their property at the price they desire. Because surrounding foreclosures negatively impact the value of other homes, homeowners are finding that if they want to sell and move on they must offer rock-bottom prices to buyers. This is what we foresaw at the beginning of the foreclosure crisis--an increase in the number of foreclosures and a decline in home prices that would put many homeowners under financial strain.
Many are even considering bankruptcy as they struggle with home prices that fall well below the cost of their mortgage to prevent foreclosure . At least during bankruptcy, there is a fighting chance that mortgage lenders will offer a compromise such as modifying their upside-down mortgage.