RE and economic charts: Foreclosure Sale Discount by State = U.S. Home Foreclosures Account for 28% of All Residential Sales in Q-1 = Foreclosure Sales Centered in Few States, So Why Should We Care?

Saturday, May 28, 2011

Foreclosure Sale Discount by State = U.S. Home Foreclosures Account for 28% of All Residential Sales in Q-1 = Foreclosure Sales Centered in Few States, So Why Should We Care?

[mEDITate-OR:
assume that The Problem is in someone else's pocket.
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While these article and charts are based upon the same RealtyTrac numbers
their view of them are quite different.
The 1st REO chart shows U.S. again like the post below that PLSec are still larger than either FMae OR FMac's.
The map from Diana Olrick shows U.S. that the size is very different from the severity of the problem - Cal & Fla are huge, bcuz they are; while Nev & AZ's problem is more severe, if smaller.
And, while Texas is assumed to be the strongest employment growth state, they also have a huge foreclosure problem - much larger than we have been led to believe.
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Daniel@Atlantic shows U.S. that where we assumed the "foreclosure discounts" were, they are not.
However, we simply do not believe that Nev and Az are correct. What they might not be doing is including the full discount from the peak.
As the RealtyTrac table shows U.S. the discounts from last year are not that large in Az & Nev, but the percent of total sales that are REO properties is HUGE.
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What this appears to be evidence of is that "all cash investor buyers" are bottom feeding on the least expensive REO's listed. And, that the banks are feeding listings only as fast as they are being purchased. A "balance of supply and demand" at the very bottom of the RE market.
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