Business Journal: Analysts Say Foreclosures To Continue
Homebuyers are finding bargains, but analysts say the brisk sales of foreclosed homes will continue to impact the region.
Friday, November 14, 2008
Sure, home-shoppers have been buying homes at a rapid clip during the past several months — but it’s not nearly enough to halt the flood of foreclosures entering the market, according to industry groups. Banks and mortgage companies have sold about 75 percent of the 23,600 homes repossessed during the past two years in the four-county region, according to MDA DataQuick. But the backlog of homes has increased by 5,000 since January. And it’s unlikely the flood of homes entering the market will slow anytime soon, with a 32 percent increase of foreclosed homes during the third quarter, compared to the previous quarter. The glut of foreclosed homes has devastated home prices, accounting for two of every three sales last month, but they were less than 30 percent of the total number of homes on the real estate market.