Bank owned inventory nationally grew to a record high of 2.2 million in March and foreclosures starts increased by 33% month over month. This may sound bad but foreclosure sales have increased and delinquencies are down by 11% which is the lowest since 2008.
Pending sales have increased which is a good sign that the demand is strong and the inventory will decrease hopefully faster then any increase. The U.S. is expected to add at least 750,000 new households in 2011 which is a healthy demand. A lot of these new homeowners are a result of lower home prices that are cheaper to buy then to rent, low interest rates, and more confidence in the recovery of the economy.
“The good news is that recent home buyers are staying well within budget, leading to exceptionally low loan default rates among home buyers over the past two years,” Yun added.
- Fannie, Freddie, FHA combined REO Inventory at Record Level (calculatedriskblog.com)
- RealtyTrac: Foreclosure Activity at Lowest Level in Three Years, by Carrie Bay, DSNEWS.com (oregonrealestateroundtable.com)
- Holding Steady (sdierickx.wordpress.com)
- Shadow Inventory may make now the time to purchase your Retirement Home (kellybryan.wordpress.com)
- Delinquencies Continue to Decline (jefftung.net)
- 30 Percent Of All Loans In Foreclosure Have Had No Payment In Two Years (businessinsider.com)