Discussing the news from CoreLogic and several other sources about home prices rising and fewer foreclosures and what it means for buyers and sellers. Plus more…
Foreclosures and Home Prices
CoreLogic just reported that there were 57,000 foreclosures in August 2012. Which is way down from the 75,000 completed foreclosures in August 2011. They also said that the national foreclosure inventory in August 2012 is down 3.4% from the August 2011 level.
CoreLogic defines “foreclosure inventory” as the share of all mortgaged homes in any stage of the foreclosure process. So some homes in the foreclosure inventory may NOT actually end becoming foreclosed homes that the banks will be trying to sell. Once a home becomes foreclosed and is owned by the banks is is often called REO which stands for Real Estate Owned.
Anand Nallathambi, president and CEO of CoreLogic said:
The continuing downward trend in foreclosures and a gradual clearing of the shadow inventory are important signals that the recovery in housing is gaining traction
CoreLogic also released their August 2012 Home Price Index and said that US home prices, including distressed sales, increased 4.6% in August 2012 compared to August 2011. This is the biggest year-over-year increase since way back in July 2006. And this is the 6th month in a row that US home prices have increased both on a month-over-month and year-over-year basis.
Also LPS is reporting the national foreclosure inventory is at the lowest point since October 2010
And Clear Capital is reporting US home prices are up 3.6% year over year and in the South they are reporting home prices are up 3.2% year-over-year.
Buyers: Fewer foreclosures and rising prices could be a strong indicator that you need to act sooner rather than later.
Sellers: Great news for you. Rising prices and fewer foreclosures to compete with should help you to get more money for your home.
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