Home Prices Flat
Home prices remained relatively unchanged in July across the 25 markets surveyed by Radar Logic. The research and analytics company's monthly housing report also showed real estate-owned inventories are expected to grow in the coming months as more foreclosures make it through the pipeline. The average home price in July in the 25 markets surveyed inched up 0.9% to $187.24 per square foot from June and is 4.7% below a year earlier, according to Radar Logic. Still, there remains a fundamental issue with supply rapidly outpacing demand, and "if nothing is done to prevent it, the problem is going to get worse in coming months," the company said. The supply of homes for sale could grow in coming months if recent increases in foreclosure filings become a lasting trend.
Foreclosure filings, including default notices, scheduled auctions and bank repossessions, increased 33% from July to August, according to recent data released by RealtyTrac. The company cites statistics from economist Tom Lawler who said there were about 548,000 REO properties on the books at the end of the second quarter. That figure includes properties held by Fannie Mae, Freddie Mac, the Federal Housing Administration, as well as trusts for private-label securities and non-FHA government agencies. "The supply of homes for sale could grow in coming months if recent increases in foreclosure filings become a lasting trend," Radar Logic said.