Foreclosures, Foreclosures! They played a huge part in bringing down the housing market and they’ve seemingly been hanging like dark storm clouds over the market ever since. And remember that ‘shadow inventory’? Millions of homes were going to drop out of the sky and flood the market at anytime. But the truth is that we’ve been working through these foreclosures and getting them off the market for some time. Now a new report from RealtyTrac shows that foreclosures over the past year have dropped 35% and now are at levels not seen since December 2006. So what happened? One, the economy has been improving and two, banks’ tighter lending standards mean that almost NO loans since 2009 have been going into default. It’s the typical market business cycle.
And what does this mean for you? If you own a house and you’ve been thinking of selling fewer foreclosures mean prices are ticking higher. If you’re a buyer it means you’ve probably missed out on the lowest (and riskiest) prices but you can still get a bargain and there is still more upside in prices to come to the market. Lastly, it’s important to note that here in Georgia we still have one of the highest rates of foreclosure so we’re not out of the woods yet. So call us or call your agent today and get some good advice on how you should proceed.