Foreclosures up? Not Really

Many of you probably got up this morning and read the paper or heard the news that RealtyTrac was reporting that foreclosures were up over the month or two.

So, those folks who have been long-predicting a “wave of foreclosures” may be feeling bolstered. Don’t get too excited, my friends. That myth has not been true and it still won’t be. See this link for some reasons WHY you won’t see that happen.

But your thought for the day: put this news in perspective. 

Foreclosure notices have been going down steadily since late 2010. In fact, the height of foreclosure notices was way back in March of 2009. 

Just to be clear, a foreclosure notice is when the lender sends a note to the home owner saying they are going to take the house back. This notice is recorded with the county recorder. So, that is where the data comes from: direct from the source.

From the perspective of my buyers who are frustrated by the lack of inventory on the market, more foreclosures is good. It means more houses on the market. But to put it in perspective, it probably won’t add even 10 percent more homes on the market than there were at the beginning of this year.

So, why am I saying this? Is it ecause I don’t want to go to another cocktail party and hear some guy talk about the “wave of foreclosures” that the “banks are sitting on” while he munches on his organic, fair trade soy chips? 

No. I’m telling you so that you know it is time to buy now before prices go up and it is time to start thinking about selling while the market is hot and interest rates are low.

Call me. I’ll buy the soy chips. 602-456-9388.