It just goes to show that nothing is ever all bad in real estate. Every negative action has a positive reaction somewhere for some real estate owner or investor. That is probably most evident in the reaction of the housing market to the foreclosure freeze. While analysts predicted massive doom and gloom if a national foreclosure moratorium went into effect – and, indeed, we agree with them wholeheartedly – there were some people in certain areas of the country who benefitted from the temporary halt to foreclosures. In fact, conventional homeowners trying to sell their homes in the conventional fashion actually experienced a small spike in home prices in areas around the country.
This trend was particularly evident in South Florida, where sales numbers dropped as expected, but median home prices rose nearly 2 percent. Of course, many experts and homeowners with their houses still on the market fear that this is temporary, since most lenders have released their foreclosure moratoria at this point, but buyer sentiment indicates that traditional owner-occupant sellers and non-distressed sellers are going to continue to have an advantage in the market at least in the near future while buyers – investors and otherwise – get over their concerns about bank-owned and pre-foreclosure properties.
As the “shadow inventory,” a projected 2.1 million homes that will soon be for sale at bargain basement prices as distressed lenders and run-down owners give up the fight to keep their properties, looms, it is arguable that traditional sellers are going to need every advantage in order to remain in the game at all. Do you think that the foreclosure freezes were ultimately a good thing for the industry, or just more bad news and more artificial manipulation of the housing market?
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