| Why the Housing Market Won't Improve Soon | | | | foreclosure in the coming months is said to be |
| While most real estate agents and brokers are | | | | massive. Las Vegas is ranked #1 with commercial |
| desperately searching for signs that the housing | | | | properties in default, with about $9.7 billion worth of |
| market is recovering, those signs are simply not there | | | | properties in distress. |
| yet. The foreclosures keep flowing with no let up in | | | | Michael Campbell, managing partner of Colliers |
| sight. And there's yet another set of statistics that | | | | International, said that banks have requested that his |
| show the current historic high of available REO | | | | firm take over management of many different |
| properties isn't going to be going down any time soon - | | | | commercial properties - everything from completely |
| as a matter of fact, more REO records could end up | | | | undeveloped land to the 7000 yards-plus golf course in |
| being set. | | | | Las Vegas, Stallion Mountain. |
| At the "Calculated Risk" blog, they make the case that, | | | | Campbell also said he was hoping lenders would |
| after a housing bubble bursts, there is a correlation | | | | rewrite loans, but that may end up being impossible. "I |
| between home price recovery and unemployment. | | | | would say we are headed in a downward direction, |
| According to their study of housing bubbles in the late | | | | but I don't see that it has ramped up yet," Campbell |
| 1970's and 1980's, real house prices continued to | | | | said. "With all these loans coming due, there will be |
| decline after these bubbles burst - basically until the | | | | more defaults and foreclosures." |
| unemployment rate peaked. Then prices remained | | | | Will anything stop these REO foreclosures? Not likely. |
| fairly stagnant for a few years after that. | | | | The government and industry programs designed to |
| Since most economic experts agree that | | | | ease foreclosures to date haven't been very |
| unemployment isn't close to peaking yet - and since | | | | successful. Moratoriums have just put off the inevitable |
| this particular housing bubble was much bigger than the | | | | and a lot of mortgage holders just aren't going to |
| other two cited - that suggests real estate prices | | | | qualify for the bailout programs. Refinancing isn't going |
| aren't about to start inching upward for months to | | | | to help with interest rates where they are. |
| come. That means more homeowners staying | | | | The good news is that REO sellers are getting a lot of |
| "underwater" (their houses worth less than they owe | | | | activity on their properties from cash-rich investors |
| on them), as well as more mortgage holders struggling | | | | who know a great deal when they see it. But with |
| to make their monthly payments. Every housing expert | | | | many more REO listings coming down the road, REO |
| expects many more REO properties to come through | | | | agents and brokers will still find themselves keeping |
| the pipeline. | | | | very busy. |
| Also, the boom in foreclosures in the residential market | | | | ASREOS.com, the home of ASREOS, the American |
| is now being joined by a spike in foreclosures in | | | | Society of REO Specialists, is growing in leaps and |
| commercial sector. The number of commercial | | | | bounds to help REO professionals gain a competitive |
| properties, including office and retail buildings, facing | | | | edge and get access to these lucrative listings. |