forclosures and the market

By
Industry Observer with Howard Sumner Consulting

A little perspective is always a good thing to try and sort reality from fiction. Right now nationally resale’s of existing homes are running in the 4.8 million category that is with interest rates that make it pretty close as cheap to own as it is to rent. The second is, news on the foreclosure front touting how much it has dropped as the saying goes “figures don’t lie but liars figure”

So the thought to ponder, with about 3.8 million homes either 90 days late or in foreclosure  which is about 88% higher than  “normal” (ignoring all the delinquent less than 90 days) how long does it take for the market to recover?

 

 

Feb-12

Feb-11

Delinquent

7.57%

8.80%

In Foreclosure

4.13%

4.15%

Less than 90 days

2,059,000

2,495,000

More than 90 days

1,722,000

2,165,000

In foreclosure

2,065,000

2,196,000

Total

5,846,000

6,856,000

 

Note that the number of loans in the foreclosure process has only declined slightly year-over-year. This remains far above the "normal" level of around 0.5%.

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