Foreclosed Homes for Sale Continue to Rise

With the ongoing economic turmoil continuing to keep prices and sales volume down

across the United States, the number of Foreclosed homes for sale continues to rise. As banks continue to make futile attempts at restructuring bad loans the "ghost inventory" is steadily climbing. This ghost inventory can be defined as housing stock that is either owned by the banks but has not been released for sale yet or homes that are in a "limbo stage," and have yet to be foreclosed on but will be at some point.

The recent $8,000 tax credit which ended in this summer simply caused another temporary boost to the market which leads uninformed buyers to chase a credit which in the long run actually had no value. This credit was more of a head fake than anything else,as sellers were able to increase their sales prices by this amount or more in order to attract the easily fooled buyers. In many cases the aftermath of this credit will show that shortly after its expiration home prices will have dropped more than the original $8,000 the government was offering.

What else is keeping the housing market down? Lack of confidence.

Recently the chief economist for the National Association of Realtors,less than a week before the release of its monthly existing home sales report, warned that this lack of confidence grounded or not, could pose a bigger risk to recovery than expected.

"As long as people hold back,whether realistically or irrationally,or rationally; Lawrence Yun chief economist of the National Association of Realtors says, "then naturally there will be too much supply in relation to the demand, and that could lead to some over-correction in home prices in some markets."

What is most likely in store for the U.S. housing market is a continuation and increase of Foreclosed homes for sale over the next 2 to 3 years until new jobs are created and the economy once again begins to recover.

Foreclosed Homes for Sale Continue to Rise

By: Corwin Smith

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