Flood of foreclosures: It’s worse than you think

NEW YORK (CNNMoney.com) — Housing might be in worse shape than we think.

There is probably even more excess housing inventory gumming up the market than current statistics indicate, thanks to a wave of foreclosures that has yet to hit the market.

The problem: Many foreclosed homes and other distressed properties that are now owned by banks have yet to be listed for sale. The volume of this so-called ‘ghost inventory’ could be substantial enough to depress already steeply falling prices when it does go on the market.

“That’s not good news,” said Pat Newport, an analyst with IHS Global Insight. “[Excess] inventory is the biggest problem in housing these days, and it leads to lower housing prices, which leads to more foreclosures.”

RealtyTrac, the online marketer of foreclosed properties, recently discovered that it has far more foreclosed properties listed in its database, which the company compiles using courthouse records, than there are listed in the multiple listing services (MLS) maintained by real estate agents.

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One thought on “Flood of foreclosures: It’s worse than you think

  1. Don’t worry, the cure is working as we speak 🙂

    These ‘wild’fires are just so convenient to burn off the excess housing inventory, aren’t they?

    Purposely set, arsonous fires to remove the housing excess thus allowing bankers and the rich to continue their endless profit-making.

    Hiring wrecking crews costs money while wildfires are cheap to set and the Federal government will reimburse the State government once a disaster has been declared.

    It’s just so damned convenient, isn’t it?

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