Nevada City Virtual Tour

Monday, January 24, 2011

On the other hand.... Foreclosure glut threatens housing recovery

Foreclosure glut threatens housing recovery

"December was a nice finish to the year, but looking at the bigger picture -- home sales and prices have been scraping along the bottom for the last three years,"
"So, while we're not digging a deeper hole -- the housing market is still quite weak, and there are still more homes available on the market than there are likely to be buyers."

Nationwide, the median price of all existing homes sold in December was $168,800, down 1% from a year ago.

Meanwhile, the inventory of homes on the market fell 4.2% in December to 3.56 million units. That's enough inventory to last 8.1 months, and is down from a 9.5-month supply in November.

While that's an improvement,the data doesn't reflect the large number of foreclosures that could soon enter on the market.

"What's hidden behind the curtain are potential foreclosures adding to those inventory levels,"
"Even as we have jobs growing, inventory is still large and more foreclosures are going to be coming on the market.'s going to continue to be very much a buyer's market."

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