It's that time of year when ghosts, goblins and things that go bump in the night have trick-or-treaters trembling in their boots. However, this Halloween, nothing is quite as frightening as our nation's housing market.
In the past couple of years, Americans have been inundated with bone-chilling images of eerie boarded up homes in abandoned ghost towns across the country. A nasty witch's brew of economic turmoil, soaring unemployment rates and more stringent lending standards caused Americans homeowners to collectively lose $3.3 trillion in property value last year. (Learn more about the current real estate problems in Who Is To Blame For The Subprime Crisis?)

Of course, some areas have witnessed much more terrifying housing markets than others. So, what U.S. cities win the prize for the creepiest, most foreclosure-ridden neighborhoods? If you're looking for a spooky spot to celebrate Halloween, look no further than these scary American communities, which boast the most horrifying foreclosure rates in the country. (Learn more in Saving Your Home From Foreclosure.)

  1. Las Vegas, Nevada
    Typically known for gambling, fun and good old fashioned excess, Las Vegas has taken on a more sinister reputation as of late. With one in every 13 homes subject to foreclosure filing in the first six months of 2009, Las Vegas has the highest foreclosure rate in the U.S., based on a July RealtyTrac report. The nightmarish rate in Vegas, which has grown by 56% since the first half of 2008, is six times the national foreclosure average (one in 84). Yikes!

  2. Cape Coral-Ft. Myers, Florida
    This beautiful Southwest Florida community known for its pristine beaches and stunning Gulf of Mexico views, has transformed into somewhat of a spooky seaside ghost town. The Cape Coral-Ft. Myers area has the second highest foreclosure rate in the nation with one in 14 homes subject to foreclosure filing, according to RealtyTrac.

  3. Merced, California
    Merced, California is the third scariest American neighborhood, with one in 15 homes facing terrifying times. While this ranking is certainly spine-tingling, Merced has actually seen an improvement since April, when it was ranked number two with one in 24 homes facing foreclosure.

  4. Riverside, San Bernardino and Ontario, California
    These typically sunny California communities have fallen in the ominous shadow of countless foreclosure signs. Ranked number four in foreclosures, the Riverside-San Bernardino-Ontario area has a 5.73 foreclosure rate with one in 17 homes in trouble.

    As a matter of fact, California dominates the frightening foreclosure list, with six cities in the top 10 foreclosure markets. Next in line comes Stockton, California at number five, followed by Modesto, Bakersfield and Vallejo-Fairfield at numbers six, seven and eight. But we'll leave California alone for now, and move onto some other scary states.

  5. Phoenix, Mesa, and Scottsdale, Arizona
    This formerly popular, sun-drenched retirement destination has given way to a ghostly district filled with fearsome foreclosure signs. Ranked at number 9 in foreclosures, the Phoenix-Mesa-Scottsdale area has a bloodcurdling 4.4 foreclosure rate with one in 22 houses subject to foreclosure filing.

  6. Detroit, Michigan
    Detroit ranked highest in the nation in RealtyTrac's 2006 and 2007 foreclosure reports, but the city has had some relief in the past year. However, while Motor City has seen a decrease in its foreclosure rate, it continues to rank among the top 50 metro areas.

    Not to mention that Detroit property values have fallen off a cliff. As a matter of fact, the average sales price of a Detroit house in December 2008 was $7,500 according to Realcomp, a listing service. You read that right: That's $7,500 with two zeros, not three.

    The disturbing images that haunt the metro area also make Motown a notably creepy community. As you stroll through Detroit, it's not rare to find street after street of boarded up, collapsing homes overgrown with weeds alongside burned out, abandoned buildings with shattered windows. Some brave visitors say it's like a scene straight out of a post-apocalyptic movie. Now that's the stuff of Halloween nightmares.

So, this Halloween, just remember that there are scarier things than the ghouls and goblins prowling your neighborhood. If someone could dress up like the American real estate market, they would have the most frightening costume of all. (For more on foreclosures, check out Battling Foreclosure: The HOPE NOW Alliance Strategy and Short Sales And Foreclosures: When It's Time To Move On.)

Related Articles
  1. Home & Auto

    The Pros and Cons of Owner Financing

    Details on the upside and risks of this type of deal for both the owner and the buyer.
  2. Mutual Funds & ETFs

    ETF Analysis: PowerShares S&P 500 Downside Hedged

    Find out about the PowerShares S&P 500 Downside Hedged ETF, and learn detailed information about characteristics, suitability and recommendations of it.
  3. Economics

    A Look at Greece’s Messy Fiscal Policy

    Investigate the muddy fiscal policy, tax problems, and inability to institute austerity that created the Greek crises in 2010 and 2015.
  4. Home & Auto

    4 Areas to Consider Roofing Material Types

    Roofing your home is very important, that’s why you should choose a roof specifically designed to handle your area’s climate.
  5. Mutual Funds & ETFs

    ETF Analysis: iShares US Real Estate

    Learn about the iShares US Real Estate fund, which holds shares of equity and nonequity real estate investment trusts incorporated in the United States.
  6. Entrepreneurship

    Top 5 Startups That Emerged in Detroit

    Learn how startups are changing the face of Detroit, a city long dominated by large corporations, and identify the specific Detroit startups leading the trend.
  7. Economics

    How Do Asset Bubbles Cause Recessions?

    Understand how asset bubbles often lead to deep, protracted recessions. Read about historical examples of recessions preceded by asset bubbles.
  8. Professionals

    Holding Out for Capital Gains Could Be a Mistake

    Holding stocks for the sole purpose of avoiding short-term capital gains taxes may be a mistake, especially if all the signs say get out.
  9. Investing News

    What Shook the U.S. Stock Market Today?

    What was looking as a decent year for US Stock market has suddenly gone off track as the Dow Jones Industrial Average plunged 531 points in the week ending August 23, 2015.
  10. Credit & Loans

    Schedule Loan Repayments with Excel Formulas

    Calculate all the particulars of a loan using Excel, and set up a schedule of repayment for a mortgage or any other loan.
RELATED TERMS
  1. Equity

    The value of an asset less the value of all liabilities on that ...
  2. Derivative

    A security with a price that is dependent upon or derived from ...
  3. Security

    A financial instrument that represents an ownership position ...
  4. Series 6

    A securities license entitling the holder to register as a limited ...
  5. Internal Rate Of Return - IRR

    A metric used in capital budgeting measuring the profitability ...
  6. Board Of Directors - B Of D

    A group of individuals that are elected as, or elected to act ...
RELATED FAQS
  1. Can I take my 401(k) to buy a house?

    Once you reach 59.5, you can use the funds in your 401(k) retirement savings account to buy a house or any other expense ... Read Full Answer >>
  2. Can I take my 401(k) to buy a house for my children?

    Under the standard regulations for 401(k) retirement savings plans, you may elect to withdraw funds from your 401(k) for ... Read Full Answer >>
  3. How do futures contracts roll over?

    Traders roll over futures contracts to switch from the front month contract that is close to expiration to another contract ... Read Full Answer >>
  4. How is market value determined in the real estate market?

    Anyone who has ever tried to purchase or sell a home has probably heard a lot about the property's fair market value, or ... Read Full Answer >>
  5. How does a forward contract differ from a call option?

    Forward contracts and call options are different financial instruments that allow two parties to purchase or sell assets ... Read Full Answer >>
  6. Why do companies enter into futures contracts?

    Different types of companies may enter into futures contracts for different purposes. The most common reason is to hedge ... Read Full Answer >>

You May Also Like

Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!