MONROE - Despite a perception by some that the nation's housing market decline is slowing, southwestern Wisconsin saw an increase in home foreclosures in 2009.
Green County experienced a 12 percent increase in home foreclosures from January to Sept. in 2009, compared to the same time last year, according to information the University of Wisconsin Extension compiled through the online Wisconsin Circuit Court Access system. Between January and September Green County home owners experienced 123 foreclosures compared to 110 in 2009.
Lafayette County also felt an increase in home foreclosures through the third quarter of 2009. The county had a 58 percent increase, but only 13 new foreclosures, according to court records.
Like many economic trends to hit the country, home foreclosure rates in the Midwest might be lagging behind, said Bub Zwygart, owner-broker of Zwygart Realty in Monroe.
"We are always so far behind what is going on in the rest fo the country," he said.
However, unlike places such as Florida or Arizona, the area's foreclosures are not based as much on the declining property value of a home as they are the loss of income due to local economic hardship, Zwygart said. Companies have been laying off employees or instituting furlough days, for example, he said.
"Goodness, this unemployment rate is continuing to stay pretty high," he said.
Statewide, foreclosure cases were up 40 percent when comparing the third quarter of 2009 to the third quarter of 2008. The third quarter of 2008 was up only 6 percent in 2008 over 2007, according to the UW-Extension report.
The current uptick in local foreclosures could be an impact felt from the area's economic downturn from as far back as a year ago, said Ron Markham, market president of Wisconsin Community Bank. The bank is a home and commercial lender.
"If you are going to collect a property, it could literally take six to 12 months," he said.
Even thought the local housing market foreclosures are a sign of decline, Zwygart said, the apparent demand for mid-priced homes has shown improvement.
When the housing market was particularly lean, he was showing about 20 homes per week in that price range, but now he shows about 35 homes a week.
Many people are taking advantage of the $8,000 federal housing tax credit, while others who have been waiting to buy a home to see how the market was going to play out are ready to buy now, Zwygart said. Some possibly have waited to buy a new home because they wanted to see if they still were employed after the economy went south, he said.
Though one sector of the housing market is doing well, there is some reason to believe the situation could worsen, according to the report by the UW-Extension.
The fourth quarter of the year is the worst time of year for home foreclosures, the reports stated. In 2008, 27 percent of Green County's foreclosures came between October and December. Neither Markham or Zwygart knew why that phenomenon occurs.
Additionally, at least one key sector of the local economy is showing a sign of economic decline, Markham said.
The agriculture industry has slowed, or at least the agriculture machinery repair business has slumped, he said. That is an indicator there is less activity in the key local economic sector.
"They are slow, which is a reflection of our economy as a whole," Markham said.
When money dries up in a community, Zwygart said, it can also have an affect on the housing market.
"Part of it is there just isn't enough money to go around," he said.
Green County experienced a 12 percent increase in home foreclosures from January to Sept. in 2009, compared to the same time last year, according to information the University of Wisconsin Extension compiled through the online Wisconsin Circuit Court Access system. Between January and September Green County home owners experienced 123 foreclosures compared to 110 in 2009.
Lafayette County also felt an increase in home foreclosures through the third quarter of 2009. The county had a 58 percent increase, but only 13 new foreclosures, according to court records.
Like many economic trends to hit the country, home foreclosure rates in the Midwest might be lagging behind, said Bub Zwygart, owner-broker of Zwygart Realty in Monroe.
"We are always so far behind what is going on in the rest fo the country," he said.
However, unlike places such as Florida or Arizona, the area's foreclosures are not based as much on the declining property value of a home as they are the loss of income due to local economic hardship, Zwygart said. Companies have been laying off employees or instituting furlough days, for example, he said.
"Goodness, this unemployment rate is continuing to stay pretty high," he said.
Statewide, foreclosure cases were up 40 percent when comparing the third quarter of 2009 to the third quarter of 2008. The third quarter of 2008 was up only 6 percent in 2008 over 2007, according to the UW-Extension report.
The current uptick in local foreclosures could be an impact felt from the area's economic downturn from as far back as a year ago, said Ron Markham, market president of Wisconsin Community Bank. The bank is a home and commercial lender.
"If you are going to collect a property, it could literally take six to 12 months," he said.
Even thought the local housing market foreclosures are a sign of decline, Zwygart said, the apparent demand for mid-priced homes has shown improvement.
When the housing market was particularly lean, he was showing about 20 homes per week in that price range, but now he shows about 35 homes a week.
Many people are taking advantage of the $8,000 federal housing tax credit, while others who have been waiting to buy a home to see how the market was going to play out are ready to buy now, Zwygart said. Some possibly have waited to buy a new home because they wanted to see if they still were employed after the economy went south, he said.
Though one sector of the housing market is doing well, there is some reason to believe the situation could worsen, according to the report by the UW-Extension.
The fourth quarter of the year is the worst time of year for home foreclosures, the reports stated. In 2008, 27 percent of Green County's foreclosures came between October and December. Neither Markham or Zwygart knew why that phenomenon occurs.
Additionally, at least one key sector of the local economy is showing a sign of economic decline, Markham said.
The agriculture industry has slowed, or at least the agriculture machinery repair business has slumped, he said. That is an indicator there is less activity in the key local economic sector.
"They are slow, which is a reflection of our economy as a whole," Markham said.
When money dries up in a community, Zwygart said, it can also have an affect on the housing market.
"Part of it is there just isn't enough money to go around," he said.