Distressed Inventory Report 11-27-10
The amount of bank owned inventory and the publicly recorded notice of trustee sale (NTS) look to be slowly declining. Also in past weeks the inventory which is coming to the market is at the lower end and much of it is in the form of low end condos in older converted apartment buildings. The better newer inventory just keeps declining with situations in which I am seeing multiple offers on better homes at reasonable prices. It is logical that the amount of distressed inventory would begin to stabilize since there has not been a new round of layoffs and employment locally looks to actually be on a mild uptick. With unemployment stabilizing the question is can the consumer keep supporting its overall debt burden. That is what seems to be causing the present round of foreclosures with excessive debt on residences which have no economic value. There is no incentive to support that debt even with a good paying job. You can rent for less each month and not have the burden of the debt. I think in the next two to three years that is what will be driving the distressed inventory market is the consumer looking to rid itself of the crushing debt load due to an ill-timed acquisition. Â
The spreadsheet is here: Bellevue Foreclosure Report 11-27-10