The good news is that there was a 6% drop in foreclosures from April to May. That is the good news, but the bad news is that May was the third straight month in a row for foreclosures topping 300,000.RealtyTrac, which is the firm responsible for these figures stated that the exact number of foreclosure filings during the month was 321,480.
Nevada, Florida and California continue to be among the hardest hit areas of the country. In Nevada, one out of every 64 homes is somewhere in the foreclosure process. That is pretty scary, and Florida and California are close behind with one out of 148 for Florida and 144 for California.
A lot of analysts have forecast that housing will turn around this year, but how possible can that really be while foreclosures are running at current levels? According to RealtyTrac, in normal times there should be less than 100,000 foreclosure filings a month. We have a long way to go to get back to those levels.
In case you were wondering where we stand as opposed to this time last year, the answer is that the current foreclosure rate is 18% higher than it was last May.
Granted, we have been seeing a few encouraging signs from the housing market recently, but we still have to focus our attention on the foreclosure situation. The real factor that is going to signal a turnaround in housing will be much lower foreclosures. There is no way housing can rebound while we are seeing 300,000 plus foreclosure filings a month.
What are your thoughts on the housing market? Should we expect to see a rebound in the latter part of this year, or are we looking at next year before things start to get better?
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Reader Comments (Page 1 of 1)
6-11-2009 @ 2:22PM
Sharon said...
Option Arms brought Wachovia to it's knees as well as every financial firm thus far. With loans due to reset and come out of Government imposed moratorium (BING the word), I wouldn't be surprised to see loans tripiling in foreclosure well through 2012, and beyond. To know the reset dates and to understand what mortgages are still doing, click on the you tube videos done by mr. mortgage and see what was projected in 2008 for these ARMS. The site will also show all bank implodes as well as economic blogs from Roubini and many others.
http://mrmortgage.ml-implode.com
6-11-2009 @ 2:34PM
Mark Dias said...
So, how is Obama's plan to stop foreclosures working again?
Mark
http://mark24609.blogspot.com/
6-11-2009 @ 2:42PM
James said...
Still more big fail to come. Anyone savvy enough to create an "RE Fail" website?
6-11-2009 @ 2:45PM
ssaxena62 said...
Housing market can rebound with immediate effect. Only thing what we need is that all unemployed people should get back to work. We can get all unemployed back to work by dividing total wealth by number of people eligible for work and then give employment to every person who can work. Nobody should profit on somebody’s misery, which is not created by people who are suffering but has happened due to current nature of society. We need to have society where everyone remains employed through out their working age.
People who are currently employed, and are part of current society techniques to save their own job should also become human and reduce their own salary by as much percentage point as much Reduction in Force is planned. If company as a whole is shutting down then its competitor should employ all the employees and cut salary of its employees. Every human should be treated with dignity. May be we just need one company through out the world which can employ every single person (21-70) if they are healthy now? If somebody is not healthy then see if they can be treated to make them healthy and they can also join the workforce.
All financial hardships will go away for everyone and only nature created problems need to be taken care of.
Who all can subscribe to this "Strong world view"? I want to see poll on it.