All indicators point to 2011 being a record setting year in
foreclosure activity.Â The economy, unemployment, and a large shadow
inventory of foreclosed homes not even on the market yet are all leading
factors to 2011â€™s anticipated record-breaking foreclosure outcome.Â
2010 within itself was a record-breaking year in foreclosure activity,
where 2.9 million U.S. properties saw a foreclosure filing. Â One in
every 45 U.S. households received a foreclosure filing in 2010.
The 2011 is expected to reach 3 to 3.1 million foreclosure filings
for U.S. properties. Â To add more bad news to a grim prospect for 2011,
the foreclosure moratorium in late 2010 has been lifted in most states
and foreclosures resumed in January 2011.Â Â These foreclosures will be
processed in 2011 now.
In 2010, Nevada, Arizona, and Florida rounded out the top three
states with theÂ highest foreclosure levels.Â Followed by, California,
Utah, Georgia, Michigan, Idaho, Illinois, & Colorado to make the top
10 foreclosure states.Â Â 2011, appears to be the year where foreclosure
activity will hit an all-time high again and the top 10 states will
remain the same.Â However, it is expected that foreclosure activity
levels off in 2011 and begins to drop in 2012, 2013.
The two variables with the most significant impact on the rebound of
the residential real estate market are unemployment and the economy.Â
Although, the economy is seeing positive growth, the unemployment
numbers still remain at 9%+ in February 2011.Â A jobless recovery will
keep real wages down, limit promotion/salary opportunities, and make it
more difficult for the workforce to keep their homes if other factors in
the economy shift.Â Higher food and gas prices can have a significant
impact to households whom are on the borderline of their current housing
For homeowners wishing to sell their properties in 2011 values can be
expected not to increase and continue to remain flat at their 2010
levels.Â However, the real estate market has shown some signs for
improvement in certain areas, these are typically regulated to unique
areas with limited housing inventories and strong demand.Â Â Property
values will remain depressed at 2010 levels.
The banks are also looking at the same data and expecting foreclosure
activity to remain constant through 2011.Â Additionally, more banks
will continue to accept short sales as an alternative to taking
properties directly into foreclosure and repossession.Â Expect 2011
short sale activity levels to be much the same as 2010, accounting for
roughly 25% to 29% of all foreclosure sales.