An oversupply of foreclosed and bank owned homes is still weighing the housing market down. These distressed homes continue to account for a large percentage of housing sales in most areas. But this is not all bad since that is exactly what we want to happen right now.
Why it is good
It will get worse before it gets better. This may sound like a cliché, but it happens to be true when applied to the housing market. Before we can start to recover, we need to have all the distressed homes out in the open, including bank owned properties, clear them out and then we can start thinking about moving on.
Some regions' housing markets continue to look grim, owing mainly to the huge percentage of bank owned homes and distressed houses accounting for total residential property sales. However, this is not as bad as it sounds. More than likely, these areas will recover faster, given that they are weeding out their foreclosures quicker than other markets.
Positive side of the housing crisis
It may sound overly optimistic, but there have been positive outcomes to the ongoing housing market problem. It may not be evident yet because attention is still focused on how bad the housing situation is. However, it will soon be quite obvious that the problem has provided some valuable lessons.
Mortgage servicers and banks have improved their loan processes after being hounded by the courts, the government and the public. They do not have much choice. And hopefully, they will remember these lessons in the future so that we can avoid a repeat of what is happening right now.
The housing crisis will continue on for a few more years before we can be completely out of it. We can be thankful at least that there are some positives and that we may have some respite this coming holidays as lenders will surely hold off from adding more bank owned homes to the market. At least, just until the holidays are done.
BankOwnedHome.net: where good bank foreclosure deals are easy to find.
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- Real Estate Owned Properties and Foreclosures Impact Construction
- Inventory of Bank Owned Houses Declining, but Real Estate Trends Remain Local
- Equity Levels Pulled Down by Seattle Bank Owned Properties
- Sales of Bank Owned Condominium Properties Expected to Rise in 2011
