Growing number of foreclosure sales feeds vicious cycle

[Ex-SD]

By Alan Zibel, The Associated Press

A growing share of home sales comes from foreclosures, especially in states hardest hit by the housing bust, according to an analysis of data. In some parts of California lately, nearly half of home sales came from foreclosed houses.

The trend, which is putting additional downward pressure on home prices, is most notable there and in Nevada, Colorado, Tennessee and Michigan and is also evident in Ohio, Georgia, Florida and Arizona, according to an Associated Press comparison of 2007 sales and foreclosure data. In Nevada, for instance, 17.5% of home sales were from foreclosures, more than quadruple the number in 2006.

The growing proportion of foreclosure sales is both a symptom and a cause of worsening conditions in the weakest housing markets. Homeowners who aren’t on a deadline to sell are yanking their properties off the market. That means the remaining inventory is increasingly held by banks eager to unload foreclosed properties at fire-sale prices rather than carry the costs on their books.

http://www.usatoday.com/money/economy/housing/2008-02-12-home-sales-foreclosures_N.htm

[cr]

It’s okay though, my realtor said housing will rebound the end of 2008.

[cr]

It’s okay though, my realtor said housing will rebound the end of 2008.

[cr]

It’s okay though, my realtor said housing will rebound the end of 2008.

[cr]

It’s okay though, my realtor said housing will rebound the end of 2008.

[cr]

It’s okay though, my realtor said housing will rebound the end of 2008.

[jpinpb]

Your realtor said end of 2008? What a bear. My realtor said “Now’s the time to buy” 😉

[jpinpb]

Your realtor said end of 2008? What a bear. My realtor said “Now’s the time to buy” 😉

[jpinpb]

Your realtor said end of 2008? What a bear. My realtor said “Now’s the time to buy” 😉

[jpinpb]

Your realtor said end of 2008? What a bear. My realtor said “Now’s the time to buy” 😉

[jpinpb]

Your realtor said end of 2008? What a bear. My realtor said “Now’s the time to buy” 😉

[little lady]

Mine said it’s a good time to buy. When I asked where there headed, he said he thinks maybe a little more down(but not how much), but they’re “seeing movement in the 360k to 410k price range.”

But he doesn’t like to lowball so my husband wants to be rid of him……….

[little lady]

Mine said it’s a good time to buy. When I asked where there headed, he said he thinks maybe a little more down(but not how much), but they’re “seeing movement in the 360k to 410k price range.”

But he doesn’t like to lowball so my husband wants to be rid of him……….

[little lady]

Mine said it’s a good time to buy. When I asked where there headed, he said he thinks maybe a little more down(but not how much), but they’re “seeing movement in the 360k to 410k price range.”

But he doesn’t like to lowball so my husband wants to be rid of him……….

[little lady]

Mine said it’s a good time to buy. When I asked where there headed, he said he thinks maybe a little more down(but not how much), but they’re “seeing movement in the 360k to 410k price range.”

But he doesn’t like to lowball so my husband wants to be rid of him……….

[Author]

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