Weitz Law Firm - 520 Kirkland Way, Ste 103 - Kirkland, WA - (425) 889-9300

Friday, February 1, 2013

Increase in Foreclosures Nationwide

Weitz - while most pundits have been cheering the 'Real Estate' recovery, I have been quietly biting my lip as it is my opinion the problem is still far from over given the activity of clients in foreclosure/ planning foreclosure in our firm.

A recent AP article suggest that my 'cautious pessimism' may be warranted.

More than half of the nation’s largest metros experienced an upturn in foreclosure activity in 2012 compared to 2011, according to a report from RealtyTrac.

RealtyTrac observed foreclosure trends in 212 markets with a population of 200,000 or more and found 120 markets, or 57 percent, displayed an increase in foreclosure activity from 2011. At its peak, foreclosure activity was up in 181 out of 212 metros in 2010.

“Markets with increasing foreclosure activity in 2012 took the first step in finally purging delayed distress left over from the bursting housing bubble,” said Daren Blomquist, VP at RealtyTrac.

“Meanwhile, the underlying fundamentals in many of those markets are slowly improving, making it an opportune time to absorb additional foreclosure inventory this year — and that is particularly good news for buyers and investors hungry for more inventory to purchase in those markets,” he added.

Weitz - there is no question that the historical low interest rates, coupled with the low supply of homes have made this somewhat of a seller's market. The problem I see is this: 1) what happens if/when interest rates rise?.....prices will drop as the purchasing power of the average buyer will drop...simple mathematics there. 2) What about the large 'shadow inventory' of bank owned homes and properties in which mortgages are delinquent....the numbers are huge and they have to be addressed at some point. Perhaps the market can absorb them/ perhaps not?...only time will tell.  3) the new generation of buyers (20-30 yrs) are burdened with unprecedented student debt loans, and poor job prospects. Will the buyers be there to support this market over the next 5-10 years.? Its too soon to make call on this issue as political forces may alleviate the student debt problem. Nevertheless, it is certainly as issue that will play a role in the real estate market and general economy for years to come.

For more information on your rights in foreclosure, short sale or other real estate related issues, consider contacting a Seattle Foreclosure Attorney.

Our Firm:

Weitz Law Firm, PLLC
520 Kirkland Way, Ste 103
Kirkland, WA 98033


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