Bulk buyers will continue this trend (clearing inventory and raising prices), but the Shadow Inventory (interest resets, etc.) will work against it.
How long will it take to work through all of the inventory? We are only about 1/3 of the way through, and it’s been about 4 years. Things are speeding up a bit though; however, the Euro crisis looms and China and Australia have been seriously sliding.
In terms of raw numbers, however, foreclosure-related sales — those either in the foreclosure process or bank-owned — fell 22 percent year over year, to 224,429, representing the first annual decrease in foreclosure-related sales since fourth-quarter 2010.
For the first time in two years, the average price of a foreclosure-related property saw an annual increase in the second quarter: up 7 percent to $170,040. That’s also the biggest year-over-year jump since fourth-quarter 2006.