Foreclosure Forecast for 2015
The real estate market in this decade has been influenced by distressed properties more than any other factor. The REO, Bank Owned, and Short Sale have become household terms. Every year we wonder if there is any end for foreclosure properties and what is the forecast for the upcoming months and years. With new foreclosure numbers surfacing, the light at the end of the foreclosure tunnel seems to be a train wreck uprooting families lives. This is unfortunate that most hiccups in any financial sector seem to have negative effects on the housing industry. Today’s culprits affecting our housing market are the economic squeeze in China and the consequent effects on Wall Street and the stock market.
The numbers give a glimpse into the foreclosure future in the country. The Distressed Saturation, total REO + Short Sale, divided by all Residential Real Estate Sales, has jumped from 15.4 to 16.1 for the quarter. The South suffered the most increase in Distressed Saturation by 1.5%, Midwest and West by 0.9% and the Northeast are the only territory with a drop of .3%.
The future of real estate remains uncertain due to many factors that stem from consumers’ confidence and also how the investors will treat the upcoming distressed assets in the real estate and foreclosure market. While the pessimists reminding us of the doomsday of the last decade, I personally believe with the stock market uncertainty, the real estate investments will become a more in demand investment. The most notable factor is the negative effects of adding more distressed properties to the current market, which eventually will fall on home builders and developers’ shoulders. The consumers and investors will welcome the abundance of REO properties while the construction companies’ fear of competing with lower priced resale homes would prevent the jump in construction of such homes.