Friday, September 12, 2008

August foreclosure activity

From RealtyTrac, California was up 40% m-o-m in August, and up 75% y-o-y.

My "guess" that we might be on the cusp of a bottom, appears to have been premature with this much more REO inventory coming down the road.

But one AP writer possesses an overwhelmingly firm grasp of the obvious, stating, "If home prices and sales stabilize or improve, the foreclosure situation could get better."

Paul

2 comments:

Patient Renter said...

If home prices and sales stabilize or improve, the foreclosure situation could get better

Well home prices simply aren't going to improve. Not gonna happen. As far as stabilizing goes, even then the foreclosure onslaught could continue for quite a while being that prices will still be well below many people's purchase price.

So, I wouldn't even give the AP reporter that much credit :)

Jacob said...

"If home prices and sales stabilize or improve, the foreclosure situation could get better."


So if things get better, then things will get better? Makes sense.

Then I suppose the opposite is true? If things continue to get worse (i.e. foreclosures rising) then things will continue to get worse...

And even if foreclosures stopped rising they are still very high. Foreclosures need to slow down and that can't happen until years have passed and the excess has been absorbed.