Foreclosures now make up 25% of all real estate sales.
The mainstream media likes to talk about how real estate sales are "up." Well, that's half true. What they don't say is that ONE OUT OF EVERY FOUR of those sales are FORCED sales and that the average price on those homes sold is 28% lower than non-foreclosure sales.
This does nothing but further depress prices across the board, and forces even more homeowners underwater.
The fact that 25% of all real estate sales are foreclosure sales is not evidence of a real estate turnaround. It's further evidence of a real estate disaster that is not getting better.
Nor is there any evidence of any relief for the foreclosure problem coming soon. For example, the Obama Administration's foreclosure relief plan is an unmitigated disaster.
The Administration expected four million homeowners to sign up for the program.
Less than 1.3 million actually did.
Of this number, HALF have already fallen out of the program because they are unable to meet even modified loan terms. Even advocates of the program say it has not worked.
None of this will improve until 2013 or beyond. There are too many homes in inventory, too few buyers, too little mortgage money available, and the list goes on and on.
Be careful when the mainstream press cheerleads markets. Study what they actually say, not what they want you to hear.