NEW YORK (CNNMoney) — The number of homes entering foreclosure dropped in February, but a new up-turn may soon be on its way.
The reason? The $26 billion settlement between 5 major banks and state attorneys general over past foreclosure practices.
“The pig is starting to move through the python,” said Daren Blomquist, director of marketing for RealtyTrac, which released its foreclosure report for February on Thursday.
If that’s the case, let’s by all means get that pig shoved through the python’s back end. Assuming a python has a back end … I’ve never checked.
To keep with CNN’s water borne theme, here is the current tidal condition in the Phoenix real estate market …
As of this writing, we’re now down to 9,603 single-family detached homes across all of Maricopa County … that’s a drop of about 200 homes in the past week or so. That’s also about 20 percent of the high water mark we saw back in 2007 when the coral started to hit the fan.
Of those, 923 are bank owned homes.
Feel free to read that again … I’ll wait.
Short sales account for another 1,005. HUD homes? 48.
Going back to the full 9,600 odd homes …
- 859 are priced at $100,000 or below
- 2,355 are priced between $100,001 and $200,000
- More than 5,000 – over half – are priced at $300,000 are under
At the same time, 13,650 homes are pending or active with contingencies. 1,535 are lender owned. 8,500-plus are short sales which, if they never close, will come back to the market as foreclosures (unless purchased at the trustee sale), hopefully providing us some inventory. The other 3,650 are regular equity sales.
Those aren’t the proportions you’d like to see to have a healthy market, not that we’ve been considered healthy in years. Still, I’d likely be more concerned about the volume of short sales if there wasn’t such a dearth of properties available in general.
I’m still hard-pressed to believe there’s a major wave lurking off shore since, despite all reports for more than four years, it’s never arrived.
If it does, I’m expecting the tsunami to look much like what hit Hawaii last year after the tragic quake in Tokyo … huge fear, huge expectations and in the end, not much.