Go Here for an article in the Real Estate Economy Watch which talks about the significant rate at which foreclosures are falling. The article is not a month over month knee jerk reaction to what is happening, but shows a developing trend in real estate.
Why foreclosures are falling could have many causes; loan modifications; short sales; recovery; and owners turning to renting to get through this economic recession.
I have been focusing on rentals over the past several articles and have activly encouraged many owners I talk with to rent instead of listing in this market. In fact, I am doing that with the properties I own. I would rather sell them, but renting is a viable option.
The fact remains that a property is an asset like any other asset you may own. While many people are reluctant to sell a stock that has taken a significant hit, think Bank of America or any bank stock, they appear more willing to sell their propety at a loss than continue to hold it.
Feeding a financially distressed property market more property will have the effect of extending the downturn and slowing the recovery.