Categorized | Finance and Mortgage

Analysts Predict Another Spike in Foreclosures

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According to data in the most recent reports regarding the residential real estate market in the United States, the number of foreclosures is expected to rise significantly in the upcoming year.

The number of foreclosures has actually fallen in recent months due to scandals and an overall backlog. However, analysts expect the banks to resubmit many of the foreclosures in the coming months. In fact, all signs indicate that the resubmission of foreclosures has already begun, as the number of foreclosures reached its highest point in nine months during the month of November.

The rapid increase of foreclosure sales is expected to cause significant drops in housing values throughout the United States. It is for that reason that experts from Fannie Mae and Freddie Mac predict that the housing market will bottom out in 2012.

There is hope that, once the current backlog of foreclosures has been processed and sold off, the housing market will see improvements in overall sales volume and pricing. One thing that is certain, though, is that residential properties will be more affordable than ever. The combination of low prices and record-low mortgage rates will ensure that the United States housing market will be a buyer’s market for at least the next year.

Nevada continues to lead the nation with respect to its foreclosure rate. However, Georgia, Utah, and California are not too far behind. Some states continue to have artificially low foreclosure rates due to a severely delayed process hampered by the judicial process within the states. Those states, such as New York and New Jersey, will likely see a spike later during the upcoming year.

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About Josh Johnson

Josh is the main writer for the Residential category. He also helps out on other categories when needed, mainly the International section.

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