Best of Luck,
Century 21 Tenace
Lenders realize that if they swamp the market with too many foreclosed properties, it will slow the recovery process by driving down prices to move these properties. In response to this, lenders are slowly releasing the properties to the market (in most areas). Across the board, however, we are seeing a decrease in the amount of foreclosure inventories.
That being said, it appears that there should be a fresh supply of some REO properties this year, but I do not believe that it will have a negative impact on the market.
For more information, check out this recent news article:
Many areas in this region saw some appreciation, and depending on the specific area on price-point there's actually a shortage of inventory. I'm sure there will be some additional foreclosures and I'm guessing that some properties that were taken by the bank this year will be on the market in 2013 but overall based on my own experiences as well as what I'm reading in various professional journals indicates that the housing market, like the economy as a whole has stabilized and is in most areas coming back.
If you're thinking of buying I would suggest you do so sooner rather than later to take advantage of the still incredibly low interest rates as well as the still low housing prices.
I do believe the housing market is finally recovering. I also think that foreclosure activity is going to wax and wane over the next year or two unless we see a true economic recovery nationwide with an accompanying increase in job growth.
The solution, in my opinion, lies in encouraging banks to modify loans whenever and wherever possible, to allow reasonable short sales of those that cannot be modified and to keep actual foreclosures to a minimum. In order to do that two things need to happen. First and foremost we need to educate the public and underwater homeowners as to their options and help them to exercise the best option even if it means we don't earn a commission on every person we help. Second, we need to get the banks and the government OUT of the real estate business. I have seen more short sales and modifications derailed because of the stupidity of banks than I care to count. And now the FHA is making matters even worse. It needs to stop. If I could wave my magic wand, I would put Real Estate Agents and Brokers in charge of the whole mess and take the banks and the government OUT of the equasion!
As for the housing market, it's been recovering nicely since 2010. This is the first year we've begun to signs of actual strength. Over the next year, with tight inventories, we should see further price increases.