NEWS YOU CAN USE

Market Still in a Slump? Foreclosure Rates Drop
Saturday July 14, 2007 (reprinted from PCBDaily.com)

Recent reports indicate that the economy is not headed for a recession, but its not necessarily coming back up either. REALTORS® latest projection put the housing recovery in the second quarter of 2008.

New home builders are expected to slow production well into 2008 which in turn should help lower existing inventory. We are currently in a buyers market.

"The group now sees second-quarter existing home sales falling below the 6 million annual sales pace to a 5.96 million rate. That is still only a forecast, as final sales and price figures from the just completed period are not yet available. If it is correct, it would be the first time in four years that quarterly sales were below the 6 million home annual sales pace" 

On a positive note, the foreclosure rate fell in June. In May, there was a 30 year peak. Foreclosures, unfortunately, are something I expect to see more of in the near future as more adjustable rate mortgages some up for adjustment and property owners begin feeling the squeeze of some of their property purchases.

"In states like Florida and Nevada, what you're seeing is the fallout from an awful lot of speculative buying. You have investors that have had high-risk purchases go south on them," - Rick Sharga, Realty Trac's Vice President of Marketing