A high number of foreclosed houses across the country can be indicative of a struggling housing market, similar to what was seen only a few years ago. However, since that time, the number of U.S. foreclosures has been steadily declining - a sign that the worst of the real estate sector is behind us.
According to a recent RealtyTrac report, though, foreclosure numbers are back on the upswing. What does this mean for the housing market? While some may be concerned about this new trend, many experts assert that there is nothing to worry about just yet.
In RealtyTrac's latest U.S. Foreclosure and Market Report, data showed that foreclosure filings were 7 percent higher this past August compared to July. Filings include default notices, scheduled auctions and bank repossessions. While that figure is still 9 percent below year-ago levels, it is the smallest year-over-year decline in the last 47 months. Foreclosure auctions also ticked up 1 percent compared to the same time last year, the first increase in that regard in 44 consecutive months.
"The August foreclosure numbers demonstrate that although the foreclosure crisis is well behind us, the messy business of cleaning up the distress lingering from the housing bust continues in many markets," said Daren Blomquist, vice president at RealtyTrac.
Should there be concern?
The foreclosure increase, while small, is still to the contrary of recent housing market trends. So, should there be concern in this segment? Many experts argue that now isn't the time to worry.
One reason why foreclosures could be on the rise is because of bank activity, according to the Los Angeles Register. Many foreclosed houses are just now entering the market, partly contributing to current numbers. Eileen Rivera, an agent with Keller Williams Realty Los Alamitos, told the news source that this process takes time, and the current conditions are more residual than a sign of what to come.
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