3-Year Supply Of Foreclosed Homes Hurts Home Prices

[Purveyor]

CNNMoney

5:54 a.m. CDT, May 26, 2011

There's a three-year inventory of homes in foreclosure for sale, and that's devastating home prices.

Las Vegas has so many foreclosures that 53 percent of all the homes sold in Nevada are in some stage of foreclosure, according to a report from RealtyTrac, the online marketer of foreclosed properties.

Foreclosures represent 45 percent of sales in California and Arizona, and 28 percent of all existing home sales during the first three months of 2011.

"This is very bad for the economy," said Rick Sharga, a spokesman for RealtyTrac.

MORE...

http://www.chicagotribune.com/business/chibrkbus-3year-supply-of-foreclosed-homes-hurts-home-prices-20110526,0,1206605.story

[sendero]

1. Who...

...knew?

Really, some things are just so obvious that one wonders what the point of the comment is. "Bad for the economy?" That's the understatement of the decade. And the "3 year supply" is a pipe dream, it will be a decade before housing even starts to recover because it isn't just foreclosures pushing house prices down, it is unemployment.

[golfguru]

2. No kidding, I am trying to sell our home but..

there are 5 foreclosures/short sales in our sub-division.
No offers still after dropping price $60,000 from assessor's
valuation of $270,000 just 3 years ago.

[AtheistCrusader]

3. That could be helped if we could

do something to resolve the 'who owns the note' issue. People steer away from houses that might have been foreclosed, because title insurance may not save them if some bank nobody knew was owed anything came back later with the actual note that was sold, and re-sold, and chopped up, and interest in sold, etc.

Protect the homeowners from ambiguous title shenanigans, and that inventory will clear somewhat faster now that home loans are moving again.

[golfguru]

4. Good news, our home just got sold!

Had to drop price $62,000 over peak from 3 years back.