It is true that Ohio and the rustbelt in general has a lot of foreclosures. However, Ohio has had a lot of foreclosures for a long time and it is nothing new. The foreclosures are due to losses in the auto industry and are not attributed to the high price of housing.
However, Texas, South Carolina, North Carolina, Tennessee Atlanta are seeing booms right now. Other states are seeing low to medium growth, not price declines (except of course for the bubble areas and rustbelt area).
Real estate is very very local. Not everything goes up at the same time and not everything goes down at the same time. Savvy real estate investors can use that fact in order to diversify their holdings and create more money.
