Get out your arc, there is another flood of foreclosures getting ready to hit the market. As reported in an article from HousingWire.com, there are an estimated 2.4 million foreclosures in shadow inventory that could reach the market this year and more than 1.5 million that were ready to be listed as of December 2009. These sources estimate prices could decline another 10% as a result.It is certainly hard to imagine the real estate market stabilizing with this magnitude of foreclosures on the market. Even if there is an adequate supply of buyers (I do not think there is) to jump on these "deals," many of these properties do not qualify for traditional financing because of their condition. As a result, cash investors could be the final purchasers at even deeper discounts.
On the positive side, these properties have to be flushed out of the inventory at some point. In my opionion, the sooner that happens, the sooner the market will find the bottom. And, once we find the bottom, we can start working towards improvement.
