Over the last few years real estate investors have been clinging to reports that shine some light on the status of the real estate market. Overall, real estate market news throughout 2012 has remained mostly positive, showing slow but steady signs of progress toward recovery.
For example, home prices are rising throughout much of the country as the previously seen steep foreclosures discounts are becoming hard to find - both indicative of real estate market recovery.
However, as with most things in life, reports can produce mixed results leaving investors and consumers confused and often weary. For example, a recent report indicates that foreclosure activity increased from September to October of this year by 3%, but annually decreased 19% when compared to October 2011.
The Good: Huge Year-Over-Year Progress
The great information acquired from the report is that in comparison to October of 2011, the number of homes repossessed by the banks declined 19% annually. This essentially means that lenders will complete around 650,000 foreclosures for 2012. Although that sounds like a huge number (and in essence it is), this is a significant decline from the 800,000 foreclosures of 2011.
Therefore, real estate market progress is occurring and is best seen when you compare the current numbers to those of 2011.
The Bad: Some Real Estate Markets are still Struggling
Although many real estate markets throughout the country are starting to make significant progress toward recovery, others continue to struggle. For example, Illinois as a whole experienced a 19% annual increase in foreclosure activity. Although some areas throughout the state such as Chicago are making progress, others are still struggling to make positive steps forward.
However, the national real estate market continues to improve and eventually states with a judicial foreclosure process will start catching up and making significant strides toward recovery as well - moving the entire nation forward.
The Not so Bad: 3% Increase in Foreclosure Activity from September to October
Although the report indicated an annual decrease in foreclosure activity, it also showed a 3% increase in foreclosure activity from September to October. This news may raise some red flags for investors who have been watching continuous trends of slow, but steady real estate market recovery throughout much of the year; however, there is no reason to be alarmed.
At the end of the day there will be fluctuations in every market - even the real estate market. There will be some months when progress is made and others when it seems as though we are taking a few steps backwards. The great news is that when you look at the annual numbers, it is clear that progress is definitely being made and all we need is a little patience and perseverance.
Real estate market recovery is underway and although it is still questionable in some parts of the country, the market is moving forward and will continue to do so throughout the foreseeable future.