Though early this year some analysts predicted the housing recovery as soon as 2012, new data is showing this might have been premature. Thanks chiefly to the “robo-signing” scandal that rocked the lending and servicing industries, the current predictions are less optimistic.
A record three million homeowners will receive foreclosure notices in 2010, although only one million of these homes will be taken by the end of the year. This will be due to a holdup of processing while the lenders investigate their own processing systems.
As the fallout from all this catches up to the market, the first quarter of 2011 will look worse than the last quarter of 2010.
Besides the logistical issues, confidence from consumers in the market overall, which had been showing signs of belief, is dwindling. Fully 20 percent of consumers are not expecting a recovery until 2015, which almost guarantees no recovery until 2015.
Though a majority of survey respondents pointed towards a recovery in 2012 or 2013, most of them noted they will not even start looking for homes until 2012. This will surely slow the sell-off of the surplus of distressed properties ready to hit the market in 2011.
Furthermore, a new wave of walk-aways is predicted as homeowners stop paying the mortgages on their over valued homes. These homes will more than likely sell for 30 percent discounts, due in part to the increased levels of distress in this distressed housing market.
Nevertheless, analysts do like some markets for the near term. Raleigh-Durham, NC, Austin, TX, Salt Lake City, UT, Omaha, NE, and Oklahoma City, OK are cities that should show strong signs of improvement.
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