Positive sign that lower number of homes for sale across country but still many homes headed for foreclosure…Banks still likely to pick up many homes in Las Vegas, Atlanta, Detroit, Phoenix, Miami, Florida and California over next few years…Americans ‘Whipsawed’ by conflicting market status signals such as bidding wars on foreclosed homes…”It’s a crazy market out there” says one home purchaser…
(Source: The Wall Street Journal)
Despite some tentative signs of recovery, the U.S. housing market remains vulnerable to further price drops—especially in areas where large numbers of mortgages are headed toward foreclosure over the next few years.
The Wall Street Journal’s quarterly survey of housing-market data in 28 major metro areas shows sharp drops in the number of homes listed for sale across the country. But the potential supply of homes is far larger because banks are likely to acquire significant numbers of foreclosed homes in some areas, notably Las Vegas, Atlanta, Detroit, Phoenix, Miami and other parts of Florida, and Sacramento, Calif., over the next few years.
Read the full article by James R. Hagerty, “Waiting for the Next McMansion to Drop” at The Wall Street Journal (Oct 22, 2009).