- The percentage of Existing Home Sales that are foreclosures has increased in recent months as foreclosures work their way through the pipeline of distressed homes.
- Distressed sales were reported at 40 percent of total Existing Home Sales in the latest REALTORS® Confidence Index Survey, up from the low 30 to 35 percent range during much of last year.
- The numbers indicate that the market is absorbing a significant number of foreclosures and short sales that have been initiated over the past few years.
This is good that these properties are working through the market. It will still take some time, several years to get past the distressed properties that are pulling down price.
Of course this is going to happen. History always repeats itself. The market will recover as the economy does, and we will have another boom cycle starting in about 2014.
[...] foreclosure rates are prime opportunities for turning foreclosures into rentals because there is a wealth of supply (distressed properties) and demand (people looking for rentals because of the loss of their home or [...]