Foreclosure Floods and the “W” Recovery in Single Family
The recent lifting of State Specific foreclosure moratoriums this month has opened the floodgates again. This is the third month in the last five to set the record for foreclosures.
This month there were more than 360,000 properties with foreclosure filings — including default notices, scheduled auctions and bank repossessions — an increase of 7% from June 2009 and 32% from July 2008, according to RealtyTrac, an online marketer of foreclosed homes.
This is the Double Dip we have been anticipating … release the moratoria and open the floodgates.
AND don’t forget the “Double Double Dip” …
These are the houses that are empty and for sale that have been pulled off the market by the sellers when they didn’t sell 6-12 months ago. The Double Double Dip will occur when these “Shadow” homes come flooding back onto the market once sales finally do take a significant upturn.
This will almost certainly give a “W” shape to the eventual market recovery in single family homes in many areas. First the forclosures must be absorbed … then the shadow market of unlisted homes must be absorbed … and only then does true recovery occur.
Here is the full article on CNN/Money
One Bright Spot: the ETF “URE” is up to its highest level this year and may be a fun way to play these residential see saws as they ripple into sentiment about the commercial markets.
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