The most recent report from Realty Trac shows filings of foreclosures hitting a 6 1/2 year low in June, dipping 14% from May and down $35% from a year ago, dropping to a low not seen since December of 2006. The year to date foreclosure filings are down 23% from the same time period in 2012. Foreclosure starts also saw a dramatic fall, dropping 45% year over year in June.
Buyers waiting for more foreclosures to hit the market from an imaginary “Shadow Inventory” will be disappointed. The only possible “Shadow Inventory” at this time are homes owned by sellers who are waiting for the market to improve, either to get out from being under water or to just make more profit from their sales. With continued low inventory (and less competition) as well as interest rates rising, those “on the fence” Sellers should seriously consider putting their homes on the market soon. If you would like an indication of what your home is worth, please give me a call.