3 of 6
BACKNEXT
Growing: Phoenix
Foreclosure rate: 1 for every 22
Change from 2008: Up 51.7%

Phoenix grew very quickly over the past 10 years, setting the stage for a hard fall when the market turned sour.

Prices rose so much during the boom that many buyers turned to non-traditional mortgage products, such as hybrid adjustable rate mortgages, which offered affordable payments early on, but became much harder to pay off later.

When the real estate market went bust, real estate speculators and newer owners with no equity were quick to walk away. Phoenix got caught in a spiral of steeply falling home prices and rising foreclosure rates. "Homeowners there are losing equity and going underwater," said Mark Fleming, chief economist for First American CoreLogic, which forecasts foreclosure risk.

Future foreclosure risk: High. The number of loans 90 days late or more, has more than doubled in the past year. That will send vacant home inventory higher, putting more downward pressure on prices and perhaps triggering another round of defaults. The foreclosure risk here is among the highest in the nation, according to First American.

NEXT: Slowing: New York
Last updated August 13 2009: 6:12 AM ET
Email | Print | Share  |  RSS
 
google my aol my msn my yahoo! netvibes
Paste this link into your favorite RSS desktop reader
See all CNNMoney.com RSS FEEDS (close)
Source: RealtyTrac
More Galleries
The 13 most WTF gadgets From the weird to the gross, these 13 gadgets will make you wonder why they even exist. More
Best-loved cars in America These cars and trucks topped J.D. Power's APEAL survey, which measures how much owners like their new vehicles. More
America's most powerful cars A new 'horsepower war' has erupted among U.S. automakers and these are the most potent weapons in their arsenals. More

Special Offer
Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer Morningstar: © 2014 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2014 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2014. All rights reserved. Most stock quote data provided by BATS.