Foreclosures Still Taking A Toll
In an article I recently read, a survey by Campbell/Inside Mortgage Financing showed that between 40-46% of all homes sold in November were either REO's or Short Sales. Proof that almost 5 years into the Great American Housing Crisis these distressed properties are still taking a heavy toll on home prices and stunting the recovery of the American economy.
Distressed/Foreclosed properties typically sell for less than homes sold by owners who may be lucky enough to not be in such a bind. This economy has taken its toll on everyone. This creates a Major problem for conventional sellers because the value of their home will be undercut in order to be competitive with the homes of a distressed nature.
I believe our housing predicament has bottomed out but until the massive amounts of distressed properties can be put to good use we still have a mountain to climb.