Distressed Properties Ebbing, Real Estate Market Flattening
Distressed properties are still weighing down the housing market, but for those who have diligently followed real estate trends; it is quite obvious that figures are improving. It is not just the residential market that is exhibiting positive signs, but also the commercial real estate sector.
Figures gathered as of October 2011 show that distressed properties for sale in the commercial real estate sector have declined since they reached a plateau back in March of last year. Shadow inventory estimates also presented some positive news, particularly in the latter part of 2011.
A more optimistic outlook for the coming year
The market is still sitting on a five-month supply of distressed homes that comprise the shadow inventory as of October 2011. That is considerable, but a lot better than the seven-month supply recorded a year earlier. The process seems to be slow, but there is no doubt that housing is showing some improvement.
Most analysts predict that, with the shadow inventory not getting any worse and the mortgage delinquency rate slowly flattening, the prices of residential properties will exhibit some improvement by 2012. Improvement is happening at a faster rate in some areas, though.
The race to the bottom
Buyers and investors are trekking back to the real estate market, particularly in areas highly favored by homebuyers. Florida, for example, is recording higher than usual property buying activities. And it will not hurt that the state is also experiencing some form of population surge, with census figures showing that more than 250,000 residents have moved to the state between April 2010 and July 2011.
It is to be expected that states like Florida, which has always been attractive to property buyers because of its great climate, will exhibit the first signs of bottoming out. If distressed properties continue to decline and consumer confidence continues to improve, 2012 may not be as bleak for the housing industry as some analysts have earlier predicted.
Related Posts:
- Slowly but Surely, Inventory of Distressed Properties Is Going Down
- Fed: Foreclosed Property on Sale Undermines Western Recovery
- Owners of Distressed Houses Staying Longer in Their Homes
- Distressed Properties Growth to Push Down Home Prices Further
- Distressed Homes Open a Flood of Bargain Opportunities
