California-based Realtytrac, says that Maryland had the nation’s third-highest foreclosure rate in August pushing the number of bank owned properties to the highest level.
This increase could hold down prices longer or at least reduce the rate of price increases for the next year or two as these properties go for sale. It is a two part problem: First, the homes are usually bad for neighborhoods while they sit empty sometimes for years. Secondly, whenever they go on sale, it is for significantly less than the market-rate of other homes in the area.
It remains to be seen how quickly the market can process these homes and allow neighborhoods to recover.
