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Could the foreclosure storm be ending?
We will continue to make this statement, the housing market will remain under the weather until the jobs market improves significantly. With unemployment comes foreclosures, and that deluge, with that sordid relationship, must give way before we see clear sky in our industry again.
With that said, every now and then these days we’re seeing the tempest clouds part, a ray of sunshine if you will. This CNNMoney.com article suggests such, and we thought you might appreciate signs of a break in the foul foreclosure weather.
The article finds that Foreclosure filings were down 3% in October, the third consecutive month-over-month decline. This comes from RealtyTrac, and it is unprecedented in their monthly reports since the housing recession began.
Further, the article states that foreclosures are still up from a year ago, but that this 3-month decline suggests an indication that the foreclosure storm may be weakening.
The article also states that the fundamental forces driving foreclosures are unemployment (who knew?), high risk mortgages and negative equity.
Then somewhat contradicting itself, or playing it safe, the RealtyTrac report questions whether this break in the foreclosure weather is an artificial, rather than a real trend. The foreclosure beat, fueled by opinion, and mercurial prognostication, apparently goes on.
Home prices on the increase:
One positive trend cited in the article is that home prices have recorded modest gains over the past few months. As a result, fewer mortgage borrowers owe more than their homes are worth. And that’s good news for the foreclosure rate.
(article here)