Hat tip to Ken for sending in this article from Forbes:
An excerpt that suggests one reason why prices are going up:
In some cases banks are choosing to hold onto distressed assets longer, hoping to minimize losses on homes by artificially tamping down distressed inventory levels now. So when a home comes available in a foreclosure sale, the lender may choose to repossess it as a future REO than part with it during an auction.
In states like Arizona, that repossession is logged at the value of the mortgage — a “sales price” that may very well be higher than the actual market value of the property, according to Ingo Wizner, president of real estate research firm Local Market Monitor.
Around SD County, it appears that more borrowers have started making their payments. The number of SD filings has dropped off almost by half, Y-O-Y:
Last month had 69% fewer REOs, and 42% fewer 3rd-party sales, Y-O-Y:
Regardless whether the shortage of distressed properties is due to more borrowers now making their payments, increased legislature, or a deliberate shift in banking policy, the foreclosure spigot has slowed to a trickle.