While some rates of delinquency are still showing an increase, this could represent a turning point for future foreclosures. If the delinquency rate has finally peaked, what might this mean for the market at large?
- The foreclosure rate has been projected to peak anywhere from the end of 2010 to early 2012. If delinquencies continue to fall, then foreclosures may peak towards the earlier part of that range.
- RealtyTrac reported the slowest rate of increase in 4 years for foreclosures in their April newsletter. However, the number of foreclosures is projected to be near 1.6 million homes in 2010 and again in 2011 before starting to drop off in 2012.
- Distress sales are expected to remain more than 30% of the market through 2011, putting continued pressure on home prices (estimates of a 5% decline over the next year or two is anticipated in some of the hardest hit areas).