Foreclosure filings are at their lowest levels in three years…but not for long according to industry experts. The number of foreclosure fell substantially in the first quarter of 2011 – a 15% drop from the previous quarter and down 27% from the previous year. It is safe to assume these numbers won’t last long. The CEO of RealtyTrac, James J. Saccacio, stated recently that, “Weak demand, declining home prices, and the lack of credit availability are weighing heavily on the housing market, which is still facing the dual threat of a looming shadow inventory of distressed properties and the probability that foreclosure activity will begin to increase again as lenders and servicers gradually work their way through the backlog of thousands of foreclosures that have been delayed due to improperly processed paperwork”.
Many lenders have already commenced to work through their backlog of foreclosures with foreclosure activity up 7% in March. Rick Sharga, Senior Vice President at RealtyTrac recently commented that, “It looks like it will take another quarter to work through all the process-related issues,” and that he expects to see, “a gradual increase in foreclosure activity over the next three months while these issues get resolved and the backlog of files goes through the process, then see levels increase and level off for the balance of the year.”
Time will of course tell the real story but it will be interesting to watch it unfold. It certainly is a great time to purchase a home. It may be an even better time this summer with an increase in inventory and possible decline in prices. If you do purchase a home be sure to protect your interest and have a professional home inspection performed. Our company provides the most professional inspection service in SW Florida – click here to learn more about our services.