Foreclosures: The New Normal
RealtyTrac just released the foreclosure numbers for the first half of 2007, compared with both the previous six month period and the prior year six-month time frame. Most markets in the report are showing increases, with metro service areas showing the highest growth in foreclosures.
Foreclosures are the new normal for the real estate industry. Barring some economic surprises or federal intervention on the part of the Bush administration, it’s going to be a slippery, winding and dangerous road ahead for the next 18 months or so. But all is not doom and gloom as the report shows some declines in foreclosures in some markets.
During this time period brokerage firms can begin to penetrate the foreclosure markets by offering specialty services to Banks and mortgage companies who would, in some cases prefer short sales to actual foreclosure.
Refinancing is not altogether dead or even dying. Past clients may provide real estate agents and brokers with new opportunity for realistic pricing on the part of owners facing the foreclosure dilemma.
We expect a new round of foreclosure investors to emerge who will creatively take-out or partner with existing owners who are facing the foreclosure process.
Get the Foreclosure Report
The RealtyTrac report ranks foreclosures by the top 100 cities with the highest per household foreclosure rate. Of the top ten, Stockton, CA is number one with 1 of every 27 households in foreclosure, followed by greater Detroit, Las Vegas, Riverside, Sacramento, Denver, Miami, Bakersfield, Memphis and metro Cleveland.