Realtytrac reports that foreclosures have put an alarming blanket on prices of existing homes.
Realtytrac.com reports: “Bank repossessions, or REOs, continued to be the fastest growing segment of foreclosure activity in July, posting a 184 percent year-over-year increase — compared to a 53 percent year-over-year increase in default notices and an 11 percent year-over-year increase in auction notices,” said James J. Saccacio, chief executive officer of RealtyTrac." They go on to report that this is now 17% of all inventory in their data base, which is really quite comprehensive.
If you look at the map (source: realtytrac.com), its easy to see that removing California, Nevada and Florida from the map, eliminates most of the problem. These huge out sized numbers do not reflect what is happening to the country as a whole. In California alone bank repo's are up 427%, year over year. Mind blowing....
I've read that the IMF figures this to be a trillion dollar problem, when all is said and done. Other recent reports say that the banks have written off almost 500 billion. Could we only be half way there?
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