Click Here

REALTORŪ Magazine Online: The real estate professional's business support tool.

OFFICIAL MAGAZINE OF THE NATIONAL ASSOCIATION OF REALTORS®

Daily Real Estate News  |  July 9, 2009  |   Foreclosures Continue to Flood Market
The U.S. housing market is being flooded with foreclosed homes held by trusts managing pools of securitized mortgages.

The trusts sold six times as many properties as banks during the six months ending March 31. The average property sold for 69 percent of the original loan amount, according to data compiled primarily in the Atlanta area by Data Intelligence Corp., a real-estate analytics firm.

The dump isn’t over yet with thousands of properties still awaiting sale.

"While the banks are trying frantically to get loans off their books, they face the problem of large shadow inventories of housing being dumped on the market, which would depress prices further," says Anthony Sanders, real-estate finance professor at George Mason University in Fairfax, Va.

Karen Weaver, global head of securitization research at Deutsche Bank AG, says the steepest losses involve subprime mortgages in which lenders generally are recovering just 26 percent of the original loan amount.

From a home shopper’s standpoint, there are bargains galore in many areas. Tim Hamill, an associate with RE/MAX Greater Atlanta, who is handling sales for an asset-management firm on behalf of a trust, says his mandate is to do what it takes to sell in 30 days.

Source: The Wall Street Journal, Carrick Mollenkamp (07/09/09)

Browse all of today's news
E-mail this page to a friend
Give us feedback

Search news
Launch my search
 
Subscribe to news
Subscribe to News
Daily and weekly real estate news, trends, NAR press releases, convention coverage, plus exclusive features and columns.

RSS Feed
Get the Daily Real Estate News delivered straight to your desktop or news aggregator. (New to RSS? Learn the basics here.)
 
 
SHARE YOUR INSIGHTS
How did you sell it?
Tell us how you overcame hurdles to sell a challenging or very unique listing!