Any article on what’s happening in the local real estate market that doesn’t include statistics about foreclosures is like a weather report that says it will be 62 degrees tomorrow but doesn’t mention the 3 inches of rain and 40 mph winds. Foreclosures is one of the main drivers of the market right now and they will continue to be until the percentage of foreclosures selling are less than 10%, IMO.
Below is a table that shows what percentage of Solds for Single Family Homes were foreclosures (includes Short Sales and Bank Owned/REOs). It lists the % of foreclosures for the first nine months of 2011 vs. 2010.
Two main points:
1) The percentage of foreclosures in almost every city is substantial.
2) The percentage of foreclosures has increased in the majority of cities this year.
Until these percentages show a sharp decline across the board, I don’t see the market bottoming out.