Looking Back and Forward

Back in February we expected to hear more about a settlement between the bigger banks and the AG's of most of the states. Due to the "Robo-Signing" some homeowners were wrongfully displaced from their homes. Foreclosures came to an abrupt stop while the mess was sorted out.

When we look at the the numbers nationally regarding predictions for the Real Estate market it is similar to a national weather forecast. But what about our area? In April a Settlement was reached and the foreclosure process began picking up speed.

In February Waukesha County was averaging about 50 homes sold per month at Sheriff's Sale. Today the number is closer to 120 per month. This number fluctuates each week but the overall trend is upwards with distressed sales. Who is buying all these homes? The banks. The first mortgage holder is generally the purchaser of the home and it may take that bank 6 months before the home comes back on the market. We still have a window of opportunity in the market right now.

Many future sellers I talk to today are under the impression that next year the market will be back. What they mean is home prices will be appreciating and the mess will be over. Based on the foreclosure activity it seems like we might be in for a little more distress. But the good news is we are moving our way out of the mess with more sales.