Report: Nationwide Foreclosures Reach Five Year Low
Nationwide Foreclosures Reach Five Year Low
A recent report issued by RealtyTrac concluded that foreclosure filings in September 2012 on properties nationwide reached a five-year low, signaling the start of a widespread housing recovery. The combination of reported default notices, scheduled auctions and bank repossessions reached its lowest total since July 2007, and industry experts expect foreclosure rates to continue falling throughout the rest of the year. In an interview with the Chicago Tribune, RealtyTrak Vice President Daren Blomquist said, "The five-year low, combined with the fact that the year-over-year decrease in foreclosures was in its twenty-fourth straight month, is evidence that we're past the worst of foreclosure crisis."
Yet, experts warn that it's not yet time for Palm Beach home owners to celebrate. The decrease in foreclosed properties is undoubtedly good news; however, in the case of South Florida properties, it also indicates a sharp increase in local short sales. Short sales are notorious for decreasing home value by adding inventory to the pool of real estate for sale, but they're still better than foreclosures for the housing market and economy at large since they tend to hold their value.
In some states, the foreclosure decline is simply a result of a backlogged system, which means that the housing market may not be doing as well as it appears face-value. In Florida, for instance, the housing market recovery still lags behind the rest of the nation, but is making gains in areas such as the luxury market. New construction is also impacting trends, since an overall decrease in housing inventory has taken place in most metro areas.
Yet, the backlogged system only keeps foreclosed properties off of the market for so long. Once they're put up for sale, the purchase of foreclosed properties takes much longer than short sales, and it'll take longer for the housing market to be fully clear of properties that were affected by the housing crisis. Florida continues to rank highest in the nation for foreclosure filings, with one in 117 Florida housing units filing for foreclosure in the third quarter of 2012. Florida is known as a judicial state due to restrictions on the foreclosure process that often create a backlog of properties, though Washington, a non-judicial state, also made the list of states with the highest foreclosure rates reported during the latter part of 2012.
If you’d like more information about the hot deals in the Palm Beach County housing market, please let one of our expert real estate agents here at Palm Beach Premier Real Estate give you additional information. We’d love to help you find the best Palm Beach Condo or Boca Raton home for your needs.
[cc_author style="bumber-b" author="gia"]