Every city throughout the United States has been impacted by the recent economic recession. The combined forces of the credit crisis and the foreclosure crisis led to plummeting home prices in every region of the country. The ripples were felt from San Francisco condos to homes for sale. However, some metropolitan areas were able to avoid the worst of the turmoil and are now emerging from the mess faster than the rest of the country.
The recovery is swiftest in those areas that didn’t have as much of a housing price run up to begin with, either because the economy in those areas has stayed healthy or the economy has been limited for decades and residents have adapted or left. The top recovering areas also had lower rates of sub-prime and negative amortization loans financed in the years leading up to and during the crash.
In December of 2009, Forbes Magazine released a list of the number of loans that were foreclosed upon in the 100 largest metropolitan areas in the United States. Forbes then calculated the percentage of loans that were descending into further delinquency versus those that were improving.
For example, the number of foreclosed homes in Austin was examined to see which loans continued towards the path of complete default versus those which inched their way back towards normalcy. The lower the rate of deterioration was for a given area, the higher their corresponding ranking with regard to recovery.Here are the cities that fared best by that measurement and are recovering the most quickly:
1. Harrisburg-Carlisle, Pa.
2. Austin-Round Rock, Texas
3. Ogden-Clearfield, Utah
4. Buffalo, NY
5. Knoxville, TennesseeSource: Forbes, Francesca Levy (12/09/2009)
The Pennsylvania region of Harrisburg, and the Austin area of Texas were rated the best, followed by Ogden, Utah and Buffalo, NY. The homes seem to be recovering quite well as that region came in fifth in the study.