New York City Sees Rise in Rate of Foreclosure

While New York City hasn’t been hit as hard as other cities due to a booming economy, high demand for real estate and extensive population growth, new statistics show that the foreclosure crisis is indeed affecting real estate in the Big Apple.

The number of foreclosures during the first quarter this year were roughly 35% higher than they were during the first quarter of 2007 across the 5 boroughs that make up the city, and individually, rates in each borough are all up across the board. 2008 is predicted to be one of the biggest years yet for foreclosures, and experts predict that areas that may not have felt the crunch in the past, like New York, could feel the effects in 2008.

The city still pales in comparison to the rest of the country however, which saw an average 112% rise in first quarter statistics 2007 to 2008, and New York state, which saw a raise of over 40% during that period. Experts say Queens has been hit the hardest of the boroughs, as it currently has the highest number of pending foreclosures. A city hotline devoted to homeowner assistance for foreclosures also receives more calls from Queens than any other borough. As defaults increase, more properties are going to sale in the pre foreclosure stage throughout the area as well, giving investors many opportunities to invest in a city with an extremely high value growth potential for very cheap.