Power Tools on the Housing Market

According to RealtyTrac, foreclosures are increasing in the top 100 metropolitan areas for the third quarter. Stockton, California had the greatest increase foreclosures, 32% rise from the last quarter. Other areas with an increase in foreclosures include Detroit, Riverside-San Bernadino, California , Fort Lauderdale, Las Vegas, Sacramento, Cleveland, Miami, Bakersfield and Oakland. "When foreclosure can’t be avoided, the losses extend beyond the borrower losing a home. The foreclosure process typically costs lenders added legal fees, taxes due until the property is sold and lost equity in a house that must be priced to sell in a falling market. The added inventory of unsold homes further weakens local housing markets, depressing the value of other nearby homes."

Posted on November 15 at 11:27 AM | Permanent Link | Add a Comment (0)

Craig Guillot of Bankrate.com thinks "the residential real estate market shows signs that demand is building and home values may start recovering in 2008." With home sellers cutting prices and builders getting rid of excess inventory, bargain hunters may snap up those houses. "While the housing downturn may not be good for the overextended homeowner or mortgage lender left holding the bag, many economists agree that it is healthy to make a transition to a housing market driven on fundamentals instead of speculation. "

Posted on November 8 at 11:09 AM | Permanent Link | Add a Comment (0)