Most housing industry analysts agree that in 2011, foreclosure numbers and fixer upper listings in California will continue to grow. However, most of them also agree that this will not mean that the region is not on its way towards a recovery. They also agree that the expected recovery in the early part of 2010 had stuttered to an almost standstill as the housing market suffered from declining values and sales.
Irvine foreclosures and foreclosed property numbers in most areas of the state remain high until the last part of 2010. Sales of new and existing houses have hit almost historic lows despite record low interest rates and construction activities are practically nonexistent. Added to this is the huge number of area homeowners holding underwater mortgages. These factors, analysts have stated, have collaborated to hold back any form of recovery that seemed to have started in the first half of 2010.
The state has already lost over $1.70 trillion in housing equity due to the high levels of California foreclosures since 2007 and this trend is expected to continue for at least another two years. However, they also stated that California is on its way to a recovery, although it will be a slow, hard climb for the state before it can achieve a balanced market.
A number of analysts have stated that the recovery is not evident, primarily because of government interventions which mask actual foreclosure figures, including data for fixer upper listings. They also stated that the shadow inventory will enter the market come 2011 which will further increase distressed property supplies
Majority of analysts also agree that the first step towards a recovery is price stabilization. According to housing experts, regardless of the level of supplies of foreclosures, as long as prices of homes are stable, the market will recover. They stated that a significant improvement in the job market will also push the market towards a recovery.
Analysts have added that until 2011, the artificial boost in market data caused by government programs will cloud actual industry figures. They concluded that this year, more foreclosed properties and fixer upper listings will litter the California market, but the recovery should be starting by late 2011.
For over 10 years, John Evan Miller has provided exceptional information on the foreclosure market.
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