Significant changes for the better in Fairfield County's shadow inventory have occurred in the last three months and signal that better health for our real estate market is not only on the horizon, but may, in fact already be here.
Bloomberg Financial reported that the "pending foreclosures that threatened to flood the U.S. housing market and depress prices is dissipating as banks sell off distressed properties and let borrowers sell homes for less than they owe."
RealtyTrac Inc said that home seizures plunged 18 percent from 2011 and it is a sign that banks are turning to repossession alternatives, RealtyTrac Inc. said earlier this week, however they also noted that initial notices of foreclosure increased.
Other experts agree- the looming shadow inventory, (or homes that are seriously delinquent, in the foreclosure process or owned by banks and not listed for sale) plunged in April to the lowest level in more than three years according to CoreLogic Inc.
Locally, the in stage and REO properties have taken a whopping 38 percent drop countywide since March of 2012. Out of the 23 towns or cities in the county, EVERY one has shown a decrease in looming shadow inventory.
What looked very gloomy only a short time ago (see March 2012 and November 2011 reports) has turned into a ray of light, and much more than just a glimmer of hope. The sharp drop in numbers that has occurred over the last 3 months is not a fluke, and is a strong indicator of the following:
- More Homeowners in distress have worked out their loans and/or become current with their payments.
- Banks are more willing to help homeowners refinance.
- Banks are more willing to assist homeowners to sell their home via short sale before any foreclosure action begins.
- Banks are placing their inventory on the market a lot faster than they have been previously.
The most improved towns and cities on the distressed properties list are Greenwich, Sherman, Darien, Wilton and Westport who all saw decreases of 50% or more.
Least improved town and cities are Stratford, Shelton, Bridgeport and Ridgefield, who saw decreases anywhere from 26- 31 percent.
The nearly 40 percent drop in distressed properties in this short period of time is a significant help to the Fairfield County Real Estate Market. We are rebounding, just don't count on those chickens just yet.
SOURCE: Market Data is compiled from the GFC-CMLS and represents information obtained through our local MLS system. There may be a lag time on data.
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