One of the few states in the country that have seen a significant decrease in the number of foreclosures is the state of Kentucky. Considering it takes four months for the foreclosure to become final, these numbers are from the height of the crisis this year so that is a great indicator for the state. The numbers are pretty much self-explanitory.
The number of homes in foreclosure has decreased a whopping 22.42% and the average price of the foreclosure homes has increased at 7.23%. That means more houses that were in foreclosure are being bought than there are houses going into foreclosure. The net effect there is that the number of homes is dropping and what houses there are that are for sale are increasing in price. Both of those things are great news for folks in Kentucky because it is a very strong indicator that Kentucky has indeed turned the recovery corner and is on the way out of the issues that are affecting the country with regards to the real estate crisis we have been under.
There is a good chance that they are in no way totally out of the woods but they are certainly well on the way to recovery and certainly are a lot farther down that road than a lot of other states in this country are.
If property here in the state were valued a little higher than it is, the actual price increase would be considerably more. The issue here is that a good portion of the property here is valued low. In other words land in the state of Kentucky has never been extremely costly. So as a result the recovery pricing is also going to be lower than comparable land in other states. As a direct result the amounts are going to be less.