No End In Sight For Foreclosures

A new report by CNBC indicates that foreclosures account for 28% of all home sales. According to RealtyTrac, foreclosure sales peaked two years ago at 37%.  So it seems that foreclosures will not go away anytime soon.  But does this mean that overall foreclosures have room to increase? Can it get worse? Consider that in states like Florida only a handful of judges are handling thousands of foreclosure cases. It will take them sometime before they can ever reach a particular property let along get through a majority of foreclosures that are in the market. There are still plenty outstanding foreclosures that are not even considered in the statistics previously mentioned. This will certainly depress home values even further considering that distressed properties are sold below market value and what the property was originally purchased for.  The heaviest hit states in the foreclosure debacle are Nevada, Florida, California, and Arizona. ReatlytTrac also reports that in Nevada alone, foreclosures account for 53% of home sales. Previously it was 59%.  The Real Estate market continues to struggle as distressed properties grow in number each quarter. It’s a benefit to buyers who can purchase a property at a huge discount. It’s wise however not to over leverage yourself in this market. Getting into a 15 or 30 mortgage is a big risk as it is likely home values will see a steady increase in value anytime soon.

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~ by fnunez on May 26, 2011.

2 Responses to “No End In Sight For Foreclosures”

  1. They just keep coming and its driving home values down. Where’s the bottom of the real estate market?

    • It’s hard to say. There are just so many distressed properties out there right now that it is likely we can see depressed home prices for sometime. I also believe it’s possible that we can see an uptick in home prices due to inflation.

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