Lately, it seems as though we’ve been getting a lot of conflicting information from the media, real estate experts and what we’re seeing in the housing market. So, even though foreclosure filings seemed to fall back in November, are there indications that they could again be on the rise?
Let’s take a look at the last couple of months compared to the same time in 2010. Foreclosure filings were reduced by about 3% in October 2011 and about 14% from the same time in November 2010. That means fewer people had to move out of their homes because they couldn’t afford them.
To put it in perspective, the banks basically foreclosed upon fewer homes in November 2011 than any other time since March 2008. That’s not too bad. However, the reduction was so small and some states that have been hit particularly hard actually showed some increase in foreclosure rates.
The real estate market, which is based on the number of people buying and selling homes, renting properties, and relocations, has to grapple with the fact that a large number of foreclosures has a serious effect. Banks are afraid to sell and they aren’t lending, either. That means fewer people are even thinking about moving if they don’t have to.
One thing is for sure: if you want to move into a home of your own, buying a foreclosure might be a good idea. Many foreclosures are sold at deep discounts. So, what’s stopping you? Start looking around now.
Jon Huser
