REO property trendsThere’s an interesting piece (and a corresponding video) published today on Forbes, in which experts from RealtyTrac, Trulia, Realtor.com, and elsewhere assess the housing market to date in 2013. Where is it going — particularly the REO sector?

The whole article/video is worth a look, but here’s what they have to say about distressed properties:

Foreclosure activity is on the decline. RealtyTrac, an Irvine, Calif.-based foreclosure site, reports that 800,000 properties had foreclosure filings on them nationwide in the first half of 2013. That’s down 19% from the second half of 2012 and down 23% from the six months before that. In June there were 127,000 filings across the U.S. – the lowest number logged since December 2006.

“On a nationwide basis we will continue to see the numbers go down,” projects Daren Blomquist, vice president of RealtyTrac. “We will still have the flare-ups in state and local markets…but nothing that is going to overwhelm the momentum we have in the market right now.”

He says the exceptions to that downward trend will continue to be states where foreclosures undergo a judicial process. Florida, New York, New Jersey, Illinois, and Maryland has all seen increases in activity this year, in part because lenders are finally dealing with distressed inventory that had been delayed. Another market that may experience a “last gasp” of foreclosures is California, since the state’s Homeowner Bill of Rights has slowed down the foreclosure process. […]

“The one big pool of risk is the underwater homeowners,” says Daren Blomquist, vice president of RealtyTrac, an Irvine, Calif.-based foreclosure site. He estimates that there are as many as 11.3 million borrowers holding mortgage notes worth more than their homes. “It’s going to take two or three years before they actually have equity in their homes. Until we have those people in a place where they can participate in the market, there will be a slight drag on the housing market.”

[You can watch the video below.]

As we’ve established here previously, there is definitely a wave of REO properties on the way in and around the Sacramento region. Stay tuned to WarrenAdams.com for more developments from the REO front as these predictions and other developments play out, and please contact me today with any questions you have about buying or selling these properties in Northern California. I can help!

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