Source: Trulia – Foreclosure backlogs a concern in Phoenix, Miami and Detroit By Inman News, Tuesday, July 10, 2012.
Asking prices for for-sale homes nationwide have risen in the last four out of five months, but the biggest market gainers also have foreclosure backlogs putting those increases at risk, according to a monthly report from real estate search and marketing site Trulia. For this report, Trulia considered the for-sale and for-rent properties listed on its website through June 30, 2012, taking into account changes in the mix of listed homes in order to reflect trends in prices and rents for similar homes in similar neighborhoods, according to the site.
For-sale asking prices rose a slight 0.3 percent on both a monthly and annual basis in June with 44 out of 100 metro areas experiencing year-over-year price increases. Excluding foreclosures, prices nationwide rose 1.7 percent compared to June 2011.
Nonetheless, seven of the 10 metros to see the biggest overall price jumps, including Phoenix, Miami and Detroit, had a high share of homes in the foreclosure process, threatening that price appreciation, Trulia said.
“The huge price gains we’ve seen in Miami and Phoenix are not built to last. These increases will shrink or reverse as the backlogged foreclosures in these metros hit the market,” said Jed Kolko, Trulia’s chief economist, in a statement.
“In contrast, Denver, San Jose and Austin, which were spared the worst of the housing crisis, have strong price growth and strong job growth without a foreclosure overhang. Their recent price gains are less dramatic than Miami and Phoenix but are less at risk. Slow and steady wins the housing recovery.”
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