Foreclosure Estimate Falls, Banks May Possess Fewer Homes, but Figure Likely to Rise

Foreclosures 1 Comment

Blog administrators article comments: the initial good news that this article discusses is the fact that banks now realize that their foreclosure inventory is less than they previously predicted. The article discusses that Barclays Bank expects the foreclosure inventory will rise over the next 20 months peaking at approximately 536,000 in January 2012. Of course Florida is one of the hardest hit states with one of the highest foreclosure inventories in the US. Reality suggests that the Florida housing market will not recover until the distressed properties, including short sales and REO (bank owned real estate) decrease to normal levels. Just ask any homeowner or Fort Lauderdale Realtor trying to sell their property in a community with a high amount of distressed inventory and they will surely tell you that prices have plummeted significantly since the distressed home inventory has decreased. By William Kedersha

By JAMES R. HAGERTY, bob.hagerty@wsj.com WSJ,APRIL 28, 2010
Banks have fewer foreclosed homes to sell than previously believed
, but those holdings are likely to grow gradually over the next couple of years, a new study by Barclays Capital says.

The investment bank’s latest calculations support the view that the U.S. housing market is stabilizing but that a major recovery isn’t imminent and there are still risks of falling prices.

Barclays estimates banks and mortgage investors including Fannie Mae and Freddie Mac owned 480,000 homes at the end of February. Barclays has acquired more data on mortgages and refined its methods for analyzing foreclosure trends. Under the bank’s previous methods, the estimate for February would have been more than 600,000.

Barclays expects the inventory generally to rise over the next 20 months, peaking at 536,000 in January 2012, and then decline gradually. Full Story, Click here

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