Dropping Foreclosures Across The Country

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.