Reports are that the foreclosures numbers are declining,but still at high levels. Arms will be resetting for some time. Jobs and the broader economy is juct cripping along. Transfers are few.
This all points a new normal. At some point there will an new equilibrium and there will be exceptal absorbtion rates again.
The big qeustion will be how long will these homes be on the market and what condition will they be in after sitting for so long.
Bonner
In my area we are still seeing a high number of foreclosures. I just talked with an agent that does commercial foreclosures and he seem to think we are just begining to see that happen. When these small businesses and other business close their doors, we see more people unemployed. When these people lose their jobs, they typically can't make their house payment. I think we may see another wave of residential foreclosures and short sales coming our way.
This is a rural and sparsely populated area. When a company closes it's doors...it felt all over.
I don't think the condition of the houses will get much worse. The point at which people walk away is still when the auction is looming. New foreclosures have been inhabited to the same extent as REO homes in 2007,2008, etc. If anything, people now have a better understanding of what the process is going to look like and how long it might take. That wasn't the case when the foreclosures first flooded the market several years ago.
I agree that the recent foreclosures I've seen have been in much better condition than foreclosures from the past couple of years. The shadow inventory of foreclosures is starting to hit the market now so I don't see things getting a whole lot better in the short term.
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