Calling time on us foreclosures?

Realitytrac's latest figures reveal some surprising facts about the US foreclosure market...

For many months those keen on making purchases of US property have been able to focus much of their attention on the foreclosures market.

Ever since the sub-prime crisis first arose in the country, the crisis has seen large numbers of dwellings being lost as homeowners were unable to maintain repayments on their loans.

California has been noted as one of those places particularly badly hit, with attention also focused on the state due to its glamorous reputation as a fashionable part of the US in which to live or take a holiday.

Here the statistics have indicated just how deep the foreclosure crisis has been. Recent research by Zillow Real Estate found that in 2008 the metropolitan parts of the state's Central Valley - Madera, Merced and Stockton - saw over half their home sales being of foreclosed properties, the highest rate in the entire country.

Witches brew

Zillow's Vice-president Stan Humphries called the combination of economic factors behind the crisis a "witch's brew". Of course, while the loss of homes is bad news for the occupants, this brings bargain hunters many opportunities.

Yet new figures may suggest that this is starting to Change. Housing research firm RealtyTrac's latest figures - which cover January - revealed that the level of foreclosures was over 250,000 for the tenth month in a row at 274,399. However, this still represented a ten per cent drop on December's total.

Such a trend was apparent even in the worst-hit states. Nevada saw the rate of foreclosed homes per property dip by four per cent. California, which was second-worst, was down by 14 per cent and fourth-placed Florida by 20 per cent.

Surprising results

RealtyTrac described such findings as "surprising", as well as noting that the level of foreclosures was still up by 18 per cent on 12 months earlier. But the question may now be asked: Is this the beginning of the end of the foreclosed crisis? If so, investors looking for such bargains may need to hurry and pick them up while they can.

Commenting on the figures, RealtyTrac chief executive James Saccacio remarked: "The extensive foreclosure efforts on the part of lenders and government agencies appear to have impacted the January numbers." He suggested a moratorium of foreclosure sales by Fannie Mae and Freddie Mac, plus a 45-day freeze on new actions in Florida, were major factors.

Of course, it may be that these influences will prove to be temporary, with the ending of such embargos leading to another shift in trends. But with the economic stimulus bill now passed through Congress and the possibility that the new government may be able to bring in effective measures to curb foreclosures, it could be that the window of opportunity is starting to close.

Those who buy now may find not just a bargain, but a good investment if the Obama administration's plans to get the economy and housing market back on its feet are successful over the next couple of years.

Source: www.assetz.co.uk