“When NODs (and foreclosures) drop to normal levels, downward pricing pressure on homes will be coming off, giving a signal that prices could soon start increasing.”
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What are “normal” levels of NODs and foreclosures? What historical data, if any, is out there regarding monthly and/or yearly NODs and foreclosures? How far back does the data go? Are we coming off an historically low rate of NODs and foreclosures, such that the recent increases are merely bringing us back up toward the historical average? And what is the historical average? And shouldn’t the raw NOD and foreclosure numbers over the years be expressed as a percentage of the raw number of loans so that one arrives at a ratio of NODs and foreclosures to total loans existing? Isn’t the creation of such a ratio the only way to accurately measure where the current level of NODs and foreclosures rank in terms of severity?
I think these are some of the key questions that have to be addressed if one wishes to truly get an accurate picture of what the NOD and foreclosure numbers mean today.
