Our Terms of Service and Privacy Policy have changed.

By continuing to use this site, you are agreeing to the new Privacy Policy and Terms of Service.

6 of 10
BACKNEXT
Myrtle Beach, S.C.
Foreclosure rate: One in every 62 homes
Percent increase: 280%
National rank: 89th
Unemployment rate: 13.3%

The real estate market in this resort town has always been mostly second homes. A few years ago, 85% of sales were for investment or vacation homes, according to Coldwell Banker Chicora real estate agent Rod Smith.

"We saw a lot of flipping," he said. "And a lot of flippers got caught when prices went down."

Many of those speculators were buying ocean-front condos with nothing down and when the market cooled they could not pay the mortgages. The result: a 2,127% rise in foreclosure filings over the past two years, and home prices have fallen between 15% and 20%.

In addition, Myrtle Beach's tourist economy has been hit hard by the recession, with unemployment climbing to 13.3% in November from 9.8% 12 months earlier.

The snow birds still arrive, according to Smith, but these northern retirees escaping the cold are not big spenders.

NEXT: Honolulu, Hawaii
Last updated February 01 2010: 3:46 PM 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)
More Galleries
This Indian university cranks out top-tier tech execs Many graduates from the Indian Institute of Technology have gone on to start and lead global tech companies. Here are a few of the most notable alums. More
Most valuable American car up for auction Carroll Shelby's own very first Shelby Cobra will be sold in August. It's almost certain to be the most valuable American car ever sold. More
Kilts business wants to end "tyranny of trousers" for men Utilikilts founder Steven Villegas wants utility kilts to replace pants as mainstream menswear. More

Special Offer