Foreclosures across the nation have dropped by a whopping 29 percent as compared to this time last year. Many people are taking this as a sign that the economy is improving and the housing market is experiencing a renaissance. This is not necessarily the truth, experts say. In reality, what might be causing the slowdown are simply snares in the paperwork pipeline.
How much slower is the market, really?
As a result, RealtyTrac CEO James Saccacio predicted that as many as 1 million foreclosure actions that should have taken place this year now will be pushed into 2012 or later. Of course, should this end up being the case, it will just hold down the housing market further and prolong the depression and the lowering of property values.
Over the entire nation, the average amount of time required for a foreclosure during the second quarter of 2011 was 318 days. This is compared with 298 days during the first quarter and 277 days during the second quarter of 2010. Clearly, the amount of time required to close on a foreclosure is only taking more and more time, which simply means that foreclosures are not stopping, just taking longer.
What does this mean for the future?
Of course, there is some hope to be had. Many financial experts are eager to see what the playing field will look like in 2012, and if indeed there will be resurgence in foreclosures. Only time will tell. Be sure to keep one eye on the actions of the housing market and one eye on the amount of time it takes to foreclose – sometimes, a simple reduction in the amount of foreclosures happening on houses around the country is a lot less reliable of a measuring stick as experts and laypeople would like.