Could we see a housing recovery in the near future? Unfortunately, probably not. Based on an article published in the Wall Street Journal, as of March 2010 banks had an inventory of around 1.1 million foreclosed homes (that’s an increase of 20% from a year ago) on their books. Based on the current rate of sales, it will take a whopping 103 months – that’s 8 ½ years – to clear this inventory! With the economy still in the tank, it’s hard to imagine that the number of homes going into foreclosure will slow down drastically any time soon, so unless banks start putting more bank owned properties on the market, they will continue to pile up properties on their books. This simply cannot continue forever; at some point the dam is going to have to break so this excess inventory can be cleared.
Click below to check out the full The Wall Street Journal:
Number of the Week: 103 Months to Clear Housing Inventory
-CH
Need to sell a house? We buy houses for cash, even if you owe more than it’s worth, with no commissions or fees! Give us a call at (714) 583-9004 or fill in the web form on our home page and we’ll get back to you within 24 hours!
