Many of the housing markets that were hit hard during the housing bust from 2007 until 2011, especially in California, have bounced back quickly to where they were in 2005 and 2006.
However, other sites in the East Coast or Midwest have had a slower move towards recovery with still sluggish sales and low increase in values.
Though multiple economic factors are at work, appraisal-industry experts believe they have isolated a crucial and perhaps surprising answer: Real-estate markets rebound much faster in areas where state law permits foreclosures to proceed quickly, moving homes with defaulted loans into new owners’ hands expeditiously, rather than allowing them to sit and deteriorate, tied up in court procedures for years.
Prices of foreclosed homes in such areas typically are depressed and negatively affect values of neighboring properties, but they don’t remain so for lengthy periods because investors and other buyers swoop in and return them to residential use rapidly.
For More information on this, please visit the article written in Seattle Times.