Real Estate News

If you thought the housing market was making strides towards improvement, you’re probably wrong. Experts at CoreLogic are estimating that the number of foreclosure homes will drastically increase over the next few months. This will add to already excessive inventory, and drive the prices of real estate downward. It might take nearly two years for the average US house to sell. Here are the details from a Reuters article.

Home price increases remain slightly positive, but incoming data suggest prices will begin to decline in the early fall,” the CoreLogic analysts said in the report.

The percentage of distressed sales reached a seven-month low in June as the impact of federal tax credits boosted other sales, CoreLogic said. But sales of such properties will increase later this year, it said.Many economists, including those at U.S. mortgage giant Fannie Mae, expect prices to weaken this quarter as rising delinquencies turn into foreclosures. The worry is that falling prices could begin another downward spiral of defaults, making housing an even larger drag on the fragile economic rebound.

At the current sales pace, the added supply from banks selling foreclosed homes could double the time it takes to sell homes on the market, from the current 11 months, CoreLogic said.”Given that the tax credit simply pulled demand forward, the distressed share is expected to rise moderately during the summer and especially during the fall, when non-distressed seasonal sales begin to decline,” it said.

via Home prices in peril on distressed sales: report | Reuters.

Sellers of homes in Portland OR, Salt Lake Utah Real Estate, Baltimore Maryland Homes, and just about everywhere else need to accept the realities of the real estate market we’re in. Its bad now, but will probably get even worse. For this reason, It might be a good idea to do all you possibly can to get your house sold now.