Tenth Largest U.S. State Shows Low Turnout of Foreclosures
As one of the largest states in the United States but with the lowest population, Wyoming registered a low foreclosure rate while surrounding states vary in impact from foreclosures. Nearby states like Montana and South Dakota registered some of the lowest foreclosure rates in the country, while Colorado and Utah absorbed the brunt of the foreclosures crisis and was included in the top ten highest states.
This year’s third quarter reflected only 255 homes facing foreclosure issues at Montana. Although comparatively low by nationwide standards, the value still reflected a 141% increase from the same period last year.
Wyoming’s economy remains strong despite the nationwide financial crisis trend. With the 3 percent growth rate for employment tallied by the U.S Bureau of Labor Statistics for September as compared to the same period last year, Wyoming showed the highest employment growth rate.
This greatly contributed to the state’s virtual immunity to foreclosures. The construction industry contributed to most of Wyoming’s employment growth, with several commercial and public projects generating a fair-sized amount of jobs./
One factor that help maintained Wyoming’s low cases of foreclosures is the absence of investors buying second-hand homes for business purposes. A rush of foreclosure homes buying in other states contributed to lowering of home prices, aggravating the foreclosure crisis even more.
Another factor contributing to the lesser impact of the financial crisis to this state is the uncommon occurrence of subprime mortgages, provided to consumers with low credit scores, which only added up to the burden of these beleaguered homeowners due to higher payment rates.
Despite this promising trend for Wyoming, banking experts still predict that the foreclosure rates- will continue to increase before the market stabilizes. The current nationwide slow down in the economy will cause a lower demand for energy.
Energy is one commodity where Wyoming derives its income, with major mining activities for coal, crude oil, natural gas and other minerals. Unless the economy recovers, this decrease in demand will eventually have its impact on this U.S. state.