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Amongst All the Foreclosures, Did You Hear Our Economy is Improving!

By
Real Estate Agent with Pacific Inter Capital Solutions

Amongst all of the foreclosures, did you hear that our economy is improving? If you really study the numbers, you will realize all the money that was spent giving banks funds to Is our economy improving?provide loan modifications has certainly succeeded in one thing and that is delaying foreclosures. The numbers of foreclosures have certainly increased as of late. The amount of homes that are in the process of foreclosure has reached approximately 2.5 million people. An equal number of homes are 90 days, or more, late and are in default.

Does this sound like the economy is improving? You think about it. The banks have an incredible number of assets. These are the homes that they are holding in their shadow inventory. As of this month, there is more than a year’s supply of homes on the market. If the banks finally release more of the homes that they have been holding on to, it is inevitable that houses will decline. I believe that the reports you hear about are not as low as what is actually occurring.

An indicator of improvement is an increase in corporate profits. Corporations are showing an increase in revenue. Do you know why? Many of the companies have laid off a large portion of their work force, but their production has stayed the same. It is true that they are making more money. This isn’t because their productivity has increased but because more people have lost their jobs. You have to understand what you’re reading when given information.

Drick Ward Property Management / Broker Assoc
NEPTUNE REALTY - Virginia Beach, VA
"RealtorDrick" - Experienced Representation

Shelley, thanks for the insightful information.  It's always helpful to dig deeper than the sound bites fed to us through the media - know what you are looking at and draw your own conclusions about what it means.  Good post, thanks for sharing.

Sep 24, 2010 08:26 AM
StapletonHomeTeam KnopHomeTeam Distinctive Properties
Distinctive Properties - Denver, CO
For an UnReal Estate Experience call the Knop Home

I know I hate it when all of the triggers for how the economy is doing is Wall Street and corporate profits, in most ways that trickle down never happens and it's not very representative of how everyday folks are doing.

Sep 24, 2010 08:29 AM