The Foreclosure Rate is Falling in Portland and Across the Country
Foreclosure rates in the majority of US cities have hit a 5-year low, according to several sources. This is good news for just about everyone, current homeowners, sellers, and buyers alike.
Fewer reported foreclosures can indicate that the economy is rebounding. When the foreclosure rate is down, it can suggest that less people are losing their jobs, getting behind on their payments and being foreclosed on. This can have stabilizing effect on the market, as it helps to fuel optimism and speculation about what the future may hold and can encourage more people to make a move either toward buying or selling as their income becomes more reliable. Also, lower foreclosure rates in many cases across the country are indicative of banks being more able and willing to work with homeowners who are behind on their payments, opting for short sales and mortgage restructures rather than foreclosures.
Here are some of the telling numbers for Portland’s market:
RealtyTrac, a real estate research firm, is reporting 9,866 Oregon homes affected by foreclosure in the first six months of the year, representing one in every 170 households. The foreclosure rate fell 31.46 percent compared to the same period in 2011. In June Oregon recorded 1,667 foreclosures, down 37.7 percent from the same month in 2011. On a national level RealtryTrac reported roughly one million foreclosure actions in the first half of the year, an 11 percent drop.
When foreclosure rates are down it’s usually good news for homeowners looking to sell in the near future, as often bank-owned homes in the market deflate home prices for sellers, making them less likely to sell when they won’t be able to get as much for their homes. And the fewer homes that are on the market, the fewer options and buyers there will be.
Finally, for buyers, this means it could be a very good time to buy, as this window for finding foreclosure deals may be closing sooner than later. There really is no time like the present to explore the opportunities in the Portland real estate market.
What is your best course of action? Talk to your local Portland Real Estate Agent and find out if now is the best time for you to buy or sell!October 31, 2012