Sunday, June 17, 2012

Foreclosures on the rise.

Reuters reports that foreclosures were up in May 2012.  This increase results from settlement of litigation over foreclosure practices and also may tend to hold down real estate prices:
By moving houses out of the so-called "shadow inventory" and onto the market, the increase in foreclosures could be a drag on the fragile U.S. housing recovery. The S&P/Case-Shiller index of home prices in 20 metropolitan areas inched up February and March, in monthly terms.

Increased foreclosures might only alleviate the glut of defaulting properties.  There remain many defaulting properties on which the banks have delayed foreclosure.

No comments:

Post a Comment