US Foreclosures at 4 Yr Low, but No Recovery Yet
13 August 2011
Is this a sign of hope at last for the US housing market. According to well respected foreclosure researchers Realty Trac foreclosures fell 35% last month, taking them to a 4 year low. The US housing market has been torn apart by millions of foreclosures month on month, which have saturated markets with cheap properties, driving down prices across the country and of course, driving down sales of properties on the open market in any case.
According to the latest data 212,764 properties received default, auction or repossession notices, in July, the lowest figure seen in 44 months. Filings also dropped on an annual basis for the 10th consecutive month, and were also 4% lower than June.
Unfortunately Realty Trac also tells us why the falling foreclosure numbers are not good for the market, but bad. According to the firm the drop is not as a result of a robust recovery in the market, but because of short-term interventions and delays in the process. "This will extend the current housing market woes into 2012 and beyond," said RealtyTrac Chief Executive Officer James J. Saccacio.