Lets go positive:
1) According to RealtorMag number of notices sent out in May to homeowners in default of their mortgage payments was the lowest since 2006.
2) The foreclosure fillings have been dropping for eight straight month for a total of 33% decrease in May compare to the same time last year
3) On the other hand Reuters reports of increased activities in construction of new homes. The new building permits jumped 8.7 percent in May, the highest increase since December of last year.
Now, lets go factual:
Although there are other positive signs in different sectors of the economy, and we are slowly following a cautious path toward recovery, but there are some factors that lays clouds over the optimistic. While the positive changes of the decrease in numbers of both default-notices and foreclosure-filings by the lenders are welcoming news but does not portrays the reality of the real estate market.
The fiasco of last year with robo-signing and other mishaps by the lenders has forced a major overhaul in the process of foreclosure, which has delayed some of the new filings. There is no actual data of how many foreclosure has been delayed because of that but the following data by RealtorMag might shed some lights to where the real estate and construction industry are heading:
From 2 Million homes in some stage of foreclosure, banks are on track to foreclose on 800,000 homes this year, 200,000 fewer than last year and here is the list of states that lead the country in foreclosure in May:
- Nevada
- Arizona
- California
- Michigan
- Utah
- Georgia
- Idaho
- Florida
- Illinois
- Colorado
