Foreclosures in Northwest Arkansas is now the time to buy?

The question so many people are asking today is are we at the bottom?  Are the number of foreclosures increasing or decreasing?  Is it a good time to buy?

Nationwide the number of foreclosure filings received grew 19% over one year ago.  This according to RealtyTrac’s U.S. Foreclosure Market Report.  This trend sounds like a scary one but there is an upside.  The number of filings is down 3% from the previous month and this is the third month in a row were foreclosure filings are down.  This is the first positive trend the foreclosure market has seen in over a year.  Here in Northwest Arkansas foreclosure filings are up over 14% over the October 2008 numbers, well below the national average.

This first positive trend comes nearly 18 months after the collapse of the sub-prime lending market.  It appears lenders tightening up on lending requirements such as job history, income verification, and the elimination of many high risk loan programs is helping push the mortgage business in the right direction.

With the extension to the first time homebuyer tax credit (visit us at http://www.foreclosuresnwa.com for more information) the number of homes sales is projected to increase and the competition for foreclosures and other distressed properties will likely continue to rise. 

Considering all of these factors we could be nearing the bottom of the foreclosure market in the near future, but we are probably not there yet.  There is still the issue of the “phantom inventory” so many people are talking about.  This is the inventory that is being held by banks to artificially hold up prices.  The more likely truth about the “phantom inventory” is banks just did not have processes in place to deal with all the foreclosed properties they received at once.  These processes are improving daily and the inventory will likely be increasing soon.

The good news is this, the tax credit was extended, the foreclosure inventory available to the public is likely to increase, and interest rates are at historic lows.  All of these factors make it a great time to find a new home.

For more information on buying foreclosures or for your FREE list of foreclosures:

Visit us at http://www.foreclosuresnwa.com

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