We’ve seen a slowing of foreclosures being released onto the market over the past few months. The 5 year rate lock loans of 2005 and 2006 are expiring which means that most of the people living in those properties are already behind on their payments or their loans have already reset. At this point is is being reported that approximately 4 million home owners are at least 90 days late on their payment. Of those 4 million homes about 2 million are expected to hit the market.

Foreclosures will continue to put downward pressure on prices. 2 million is still a very large figure to overcome. That coupled with low employment figures will probably drive more people toward foreclosure. Today the August jobs figure was released and 0 jobs were added in the month of August. The economic forecast at this point is not turning any corners that will help housing.

There is an upside for real estate investors. Cheap money and cheap housing. Everyone is looking for the bottom. I don’t quite think we are dead bottom because I can still see the trend pushing downward but we should soon see the bottom and hopefully an upturn.  Timing this is near impossible but no signs point toward appreciation in South Central PA at this point.

Looking to invest or flip foreclosures in South Central PA. Contact me for a list of available properties.

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