"Foreclosures Fall to Lowest Level in Nearly 3 years." This must mean that things are all better...right? Sure...IF you only read the headline and not the entire article.
After reading this and realizing that most people will in fact only read the headline, I asked our real estate expert Kirk Nace for his take on this and this is what he had to say. "We are seeing foreclosure activity initiated on approximately 250,000 properties per month. That's a 3 million properties per year pace. Now that NAR is admitting that their sales numbers have been off you will see that there are only about 3 million sales per year. What does that mean? Banks are foreclosing on approximately 60,000 properties per month. What is happening to the rest? Is the backlog just growing and growing and growing? What does that mean for future supply? And for prices?"
Click on the title above or the link below to review the entire CNBC article.
http://www.cnbc.com/id/45680619
