The latest data from the National Association of Realtors shows that US foreclosures may have finally have tipped over the peak and entered a downward cycle. According to the NAR foreclosures fell across the country from 2.8% in July 2011 to 2.7% in December, but the drops were much more pronounced in the areas that had previously had the largest foreclosure problem. Orlando, Fort Myers, Miami and Sarasota all had the biggest declines.
This indicates that the recovery is indeed taking hold. Of course, there is still a large problem of troubled households that have yet to be foreclosed upon, the so called shadow-inventory. And, this is not the first time that foreclosures have fallen. However, with sales rising consistently over the past few months, the continually dropping inventory levels have to take a toll somewhere.
Of course, the states and cities with the largest foreclosure problems have also been the most attractive to the surge of foreign buyers flooding into America in growing numbers over the last couple of years, and less so since 2008. Of course, many more investors are still waiting to see the bottom.
While it doesn't look like the bargain opportunities will be outright drying up for quite some time yet, if sales continue to grow and inventory to fall as it has been in the past few months then we could possibly see prices beginning to rise, or at the very least stop falling. Either way it looks like the time may be approaching to stop waiting or risk missing out on the best opportunities - if it isn't passed already.
- Monday 26 March 2012