My Real Estate, Life Around Columbus and Updating My Early 1900's Home

Sunday, January 25, 2009

CNN Money: Flood of foreclosures: It's worse than you think

Typically, I try not to contribute to the "gloom and doom" of the Real Estate Market by repeating news reports (I believe you need to look at market conditions under a more localized microscope), but as interest in foreclosures is growing among Investors and Buyers that I work with, it looks as though things may be looking up for them...

Flood of foreclosures: It's worse than you think

Banks are moving slowly to list repossessed homes for sale, which could mean that housing inventory is even more bloated than current statistics indicate.
By Les Christie, CNNMoney.com staff writer
January 23, 2009: 04:40 PM EST


"NEW YORK (CNNMoney.com)--Housing might be in worse shape than we think. There is probably even more excess housing inventory gumming up the market than current statistics indicate, thanks to a wave of foreclosures that has yet to hit the market.The problem: Many foreclosed homes and other distressed properties that are now owned by banks have yet to be listed for sale. The volume of this so-called 'ghost inventory' could be substantial enough to depress already steeply falling prices when it does go on the market."That's not good news," said Pat Newport, an analyst with IHS Global Insight. "[Excess] inventory is the biggest problem in housing these days, and it leads to lower housing prices, which leads to more foreclosures."

RealtyTrac, the online marketer of foreclosed properties, recently discovered that it has far more foreclosed properties listed in its database, which the company compiles using courthouse records, than there are listed in the multiple listing services (MLS) maintained by real estate agents.RealtyTrac looked at listings in four states, California, Maryland, Florida and Wisconsin, and found that they contained only a third of the foreclosures it has in its database.The scope of the problem isn't clear, but it could be huge considering that RealtyTrac has a total of 1.5 million bank-owned properties on its site.

"Many properties that should be listed on the MLS are not listed on the MLS," said Lawrence Yun, chief economist for the National Association of Realtors (NAR).Underestimating inventory, the National Association of Realtors calculates official housing inventory statistics using data from the multiple listing services. By that measure, there were 4.2 million existing homes for sale in November, an 11.2-month supply at the current sales pace, up from a 10.3-month supply in October." (read the full article)

2 comments:

Lindsey at Rentals.com said...

I've seen several rental homes and apartments put up for sale. Apparently the rents were not keeping up with the expense of the mortgage, taxes, etc.

Lindsey at Rentals.com said...

I've seen quite a few houses and apartment complexes that used to have affordable rental rates that are now put up for sale. Apparently the rental income wasn't covering the mortgage or taxes.



William Robbins
Gledhill Robbins & Talis Group
of HER Realtors
614.208.8785
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All information is believed to be accurate but not guaranteed.
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