Has the Housing Market Hit Bottom?
Rick Sharga, executive vice president with Carrington Mortgage Holdings, says the housing market is in a “catfish recovery,” with the market hitting bottom this year but prices mostly remaining flat until 2014.
The looming shadow inventories of distressed properties are continuing to prevent prices from rebounding, he explains. Sharga, former senior vice president at RealtyTrac, says more than a million foreclosure actions failed to move forward this year due to delays, which will cause a delay in prices rebounding. Sharga made his comments during a talk at the Asian Real Estate Association of America conference last week in San Francisco.
About 800,000 REOs remain on banks’ books, with three-quarters of those not yet listed for sale, Sharga says. What’s more, an additional 800,000 homes are in foreclosure, and 1.5 million loans are delinquent, HousingWire reports.
Sharga says he expects monthly foreclosures to remain high through 2012, and REO inventories to stay elevated through 2013.
Source: “Housing Market Hit Bottom: Former RealtyTrac Exec,” HousingWire (Sept. 30, 2011)