It’s no secret to anyone who has watched the real-estate market over the past year that the number of homes for sale has dropped sharply, especially in hard-hit markets such as Miami, Orlando and Phoenix.
Economists at CoreLogic
have new evidence showing how big price declines are keeping many home
sellers on the sidelines. They found that the supply of homes for sale
declines as the rate of negative equity — or the share of borrowers who
owe more than their homes are worth — rises.
Many hard-hit markets have seen an influx of well-funded investors
scooping up foreclosures that can be rented out, meaning inventory is
being taken off the market, at least for now.
Meanwhile, banks have sharply slowed down their foreclosure processes
after being caught fraudulently processing the paperwork required to
take back those properties two years ago.
Read more on WSJ 6/11/2012 here.
No comments:
Post a Comment