Feb 17, 2009 8:14 pm US/Eastern
Foreclosures Bring Milford Housing Market Down
MILFORD (WBZ) ―
On Wednesday, President Barack Obama will announce a program to deal with the
foreclosure crisis -- a problem that's affecting people who aren't even in danger of losing their home.
For example, Milford, which sits along I-495 and is home to 27,000, has a median household income of just under 63,000.
But foreclosures have spiked 230 percent in just one year, causing a ripple effect all over town.
Next week, Nancy Rosenberger's well-tended Milford house will have a for sale sign out front as she seeks a little more space for a growing family.
"We think we'll find a house quickly, but we're worried if we will find a buyer for this house," Rosenberger said. "It's been a great house."
Something that might affect her selling price is all the foreclosures in Milford.
"It impacts everybody's (house) values. When you've got a number of foreclosures in a town, it tends to bring those other properties that are trying to compete with those homes down."
Foreclosure has hit Milford disproportionately hard. According to the Warren Group, there were 28 foreclosures in Milford in 2007 and 92 last year. That's a 230 percent increase.
Milford selectman Brian Murray said affordability in Milford has always been a draw, and that likely led to sub-prime loans for a number of unqualified buyers.
Murray said another problem came with spiking foreclosures.
"I think one of the outgrowths of the foreclosure problem is people overcrowding into apartments for a place to live and to survive any way they can," he said.
Realtor Steve Greenberg has prepared many foreclosed properties for sale. He thinks tax breaks for buyers might help boost buying, which can only help move foreclosed homes.
"I think the quicker we can get these fixed up and back on the market the better it will be for everyone," said Greenberg.
It's the polar opposite of the Rosenbergers' immaculate home, but they're out there in the same market.
Murray said something else that's accompanied foreclosures is an improved rental market. He points out the largest proposed development in town is an apartment complex.
Get:
Foreclosure Resources For Consumers
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Timeline: U.S. Credit Crunch & Financial Failures
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