Foreclosures have strained the real estate market over the past several years, but the pressure seems to be easing up, according to CNN Money. A recent RealtyTrac report indicates that foreclosures dropped in 62 percent of the nation’s largest metro areas (212 markets in total) during the third quarter of this year.
RealtyTrac vice president Daren Blomquist said that the significant decreases illustrate “that most of the nation’s housing markets are past the worst of the foreclosure problem.” Foreclosure activity in September 2012 was down from September 2007 in 58 percent of the metro markets measured by RealtyTrac.
Foreclosures dipped annually in 12 out of the 20 largest metro areas:
San Francisco — 36 percent
Detroit — 31 percent
Los Angeles — 29 percent
Phoenix — 27 percent
San Diego — 26 percent
On the other end of the spectrum, however, New York, Tampa, Philadelphia, Chicago, and Seattle saw a range of annual increases.
As foreclosure activity has fallen in many metro areas, real estate prices have increased, reports Bloomberg Businessweek. The S&P/Case-Shiller index of property values in 20 cities went up 2 percent this past August from the year prior. “The housing recovery has had modest momentum,” said Anika Khan, a senior economist at Wells Fargo Securities LLC in Charlotte, North Carolina, a subsidiary of the largest U.S. mortgage lender. Khan expects the positive trend to continue.
For the investor this may mean when an opportunity comes your way, jump on it quickly.
Raleigh NC distressed properties have dropped to about 16% of all sales.