Cities hit hard by the bank foreclosures crisis is expected to experience a decline in home prices as these cheaper repo homes compete with non-distressed properties.

In Oklahoma City, for example, home prices have declined by about 0.43 percent during the last quarter, most likely due to the considerable volume of Oklahoma City foreclosed homes. But for the entire year, prices actually increased by 0.81 percent and are even 9.53 percent more compared to 2005.

In Tulsa, however, home prices moved 0 percent during the same period, according to a report released by the Federal Housing Finance Agency, which many experts believe to be accurate when it comes to home price index. Although the local housing market in Tulsa is not as alive as before the bank foreclosures crisis hit, you can say that is not as bad as the other cities in the state or even across the nation. Its home prices is still 10.88 percent higher compared to five years ago.

There are cities where home prices have dropped, especially those with a large number of homes in Oklahoma foreclosure listings. But overall, the state’s housing market is not as affected as others like Nevada, Arizona and California. In Reno, home prices dropped a total of 10.28 percent for the entire year and 45.36 in the last five years.

The growing supply of foreclosed properties is still the number one reason for the dramatic decline in home prices, but other factors like high unemployment rate as well as the generally sluggish economy also contributed.

Overall, Oklahoma City appears to be blessed as it obviously escaped the worst of the bank foreclosures crisis, although cities like Edmond suffered a worse fate, with some homeowners finding out that the home they bought for $159,000 is now worth $86, 496.

Original post: http://www.mostlyforeclosures.com/blog/oklahoma-city-home-prices-drop-market-alive-despite-bank-foreclosures.html on MostlyForeclosures.com, your source of foreclosure houses.