An uncertain job market and economy held back many 1st time homebuyers after the tax credit ended on April 30. These buyers are the driving force for the real estate market as they create new demand and lead the charge for home sales.
Adding to this, the issues affecting foreclosures in 2010 such as the federal foreclosure remediation programs (HAFA and HAMP) as well as robo-signing, there were at least two noticeable pauses in foreclosure activity that reduced foreclosures but increased the "shadow inventory" of homes that are 60 or more days past due on their mortgages. This foreclosure shadow inventory will likely lead to an up-tick in foreclosure activity in 2011 and further downward pressure on prices.
Click here to see the bank-involved activity summary. (link will expire in March 2011)
Click here to see the non-bank-involved activity summary.
(link will expire in March 2011)
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