NEWS ALERT: Foreclosure Filings Are DOWN
December 15th, 2009 categories: Buyer Resource, Foreclosures
Good news may shed some light on the future of the national Real Estate market as well as the local Sonoma County Real Estate Market. Foreclosure filings fell in November by 8% relative to October’s filings. This news marks the fourth straight month of improvement in foreclosure filings. Foreclosure filings fell 3% in October, 4% in September and 1% in August. This is certainly good news and shows a trend in the right direction.
Even with the recent good news, there is still a long way to go. Foreclosure filings in November 2009 were still 18% above November 2008 levels. Even though there is some way to go, we think that the recent trend is a move in the right direction.
Time For House Hunting
So what is helping the foreclosure filing rate to decline? Some think it could be due to the housing assistance options and foreclosure assistance plan that the U.S. government has put into place. Others think it may be artificially induced by programs in some states where mediation is now required before foreclosure proceedings can begin…only delaying the inevitable foreclosure. It is likely a combination of factors in all reality.
Is there any other good news on the horizon? The Case Schiller Index has reported that home prices nationally have increased, albeit slightly, in each of the past 5 months. With the recent increase in home prices, fewer homeowners should be underwater in regards to their mortgage. Also, fewer homeowners are slashing home prices, and their confidence in the housing market is improving. Homeowners feel that worst is behind us, and price cuts are not necessary if they have a little time to wait for the right buyer.
So when can we expect a full recovery from the foreclosure crisis? A full recovery will likely not return until the unemployment rate is back at near historic levels. Only when this happens will homeowners be able to afford their monthly mortgage payments, and more new buyers will be able to become homeowners.
Are all of the foreclosures spread evenly throughout the country? Unfortunately not, and the levels of pain vary greatly by state. The “sand states” continue to lead the country in terms of foreclosure filings. California, Nevada, Arizona and Florida are the top contributors to the foreclosure problem. Nationally, 1 in every 417 home received a foreclosure filing in November, and the “sand states” had rates anywhere from 1 in 186 to 1 in every 119 homes. It is clear that we, and especially these 4 states, need a lot of help and there is a long way to go.
We will look at any signs of improvement in a positive manner, and we certainly think the improvement discussed here is a step in the right direction.
If you have any questions about Sonoma County Foreclosures, or Sonoma County Real Estate, please do not hesitate to contact us for the latest news.
This article was contributed by Chris Ingram.
Foreclosures can be slow a little, but 2010 people are expecting more and more numbers… Don’t get so full of hope!