Categorized | Finance and Mortgage

Foreclosures Increase in the United States

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Much to the dismay of real estate agents and experts, the foreclosure rate is once again on the rise in the United States. The foreclosure rate jumped to nearly eight percent. The increase is further proof that the United States residential real estate market has not yet shown any signs of recovery.

Analysts, though, believe that the news is not as bad as it may look, as the rising foreclosure rates can be attributed to only a few states. The majority of the country has seen a decline in the number of foreclosures.

The weak state of the job market has certainly taken its toll on the real estate market, and even in states that have not seen an increase in foreclosures; the real estate market continues to remain stagnant.

Not all the news is bad with respect to the residential real estate market. The number of thirty-day delinquencies is down across the country. The decline in delinquencies is a sign that the market may soon see far fewer foreclosures in the coming quarters.

A reduction in foreclosures is incredibly important to the residential real estate market in the United States, as it directly impacts the overall value of homes. With more foreclosures on the market, housing prices are far more likely to decline in order to stay competitive with the prices achieved from foreclosure and short sales.

As such, the sooner that the real estate market is able to significantly reduce the number of foreclosures, the sooner the overall housing market in the United States will begin to see legitimate improvement.

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About Drew Wilson

Drew focuses on the Commercial and Mortgage/Finance categories.

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