Investment and Vacation Real Estate - Orlando, Florida

Call me old-fashioned, but I still believe in that whole supply and demand thing; that’s why I’m slightly obsessed with the inventory of existing homes floating around the nation’s local MLS’s and more importantly those not floating around the MLS’s. I’m talking about the inventory of foreclosed properties that banks are holding onto, refusing to unleash onto the sales market.

“Out of more than 4 million homes currently owned by lenders, actively in foreclosure, or seriously delinquent, roughly 1 million are captured in the NAR’s [National Association of Realtors] inventory data and listed as “distressed inventory” in MLS,” note Paul Puryear and Buck Horne of Raymond James in a new report.

Think about that.

Granted, some of those properties will get loan modifications, but a lot more will not, and that means that at some point all those properties will hit an already bloated market and put even further pressure on already-falling home prices.

The report’s authors add, “Based on our analysis of the most recent mortgage delinquency trends (through March), current data shows signs of further deterioration, not stabilization.” complete story

Source: CNBC.com - Diana Olick

Stop Foreclosure & Save Your Credit SELL your Home - Short Sale