California and other states are likely to see an enormous wave of long-delayed foreclosure action in the coming year as banks deal more aggressively with 3.5 million seriously delinquent mortgages.
And experts said that dealing with the foreclosure process, from issuing notices of default to selling repossessed homes, is likely to push housing prices lower this year before the real estate market has a chance to recover.
There was no mention of pushing “housing prices lower” in the RealtyTrac report, so I wish they would cite their sources. The banks sure seem happy with the current pace of foreclosures in San Diego County – here are the last three years of activity:
Anyone, including reporters, can get a preview of 2012 foreclosure activity by looking at the trend of default notices – and it doesn’t look like ‘enormous wave’ conditions just yet:
I guess we can expect the mainstream media to assist with market overshoot when they insist on puffing their reports with the same tired old stuff.
Here’s a new chart – the price/value results of trustee sales. Even though bidders are running up the purchase prices to 18.5% above the opening bids, on average, this report shows that they are still selling for 18.6% below market value. The dumps must be going out at bargain-basement prices, because the quality properties seem to get bid up to within 10% of market.