Less distress?

A column at CNBC.com reminds us the U.S. housing market “has been running on distress for the past year, as investors rush to buy foreclosed properties in order to take advantage of today’s hot rental market.”  What’s newsworthy however, is that the supply of distressed properties for investors to gobble up has dwindled of late – explaining the unexpected 5.4% drop in existing home sales last month.  While on the surface a lower supply of distressed properties might sound like a good thing, the drop is due simply to a delay in processing foreclosures – not a lower rate of foreclosures.  The article delves further, to show how a lack of supply, even of distressed homes, impacts the ability of regular buyers to participate in the recovery.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s