(IRVINE, Calif.) — Foreclosure activity rose during the first quarter of this year in more than half of the nation’s largest metropolitan areas, RealtyTrac reported on Thursday.
“Some of those included Pittsburgh, which was up 49 percent from the previous quarter,” RealtyTrac Vice President Daren Blomquist elaborated. “Indianapolis was up 37 percent. Philadelphia up 30 percent, even New York City, which in the past, has largely escaped the foreclosure crisis of the past five years, was up 24 percent from the previous quarter.”
The increases were due to delayed foreclosures that took a long time to process, the foreclosure tracking firm said. And the situation may get worse before it improves.
“There’s going to be some more bumps in the road because of these delayed foreclosures. As those come on to the market, at least in those markets where it’s happening, it’s going to continue to weigh down home prices,” Blomquist explained.
But it’s not all bad news for the housing market.
“Overall, nationally, foreclosure activity was down in the first quarter to the lowest levels since the fourth quarter of 2007,” Blomquist said.
As more foreclosures hit the market, prospective homeowners will be at an advantage.
“The good news for buyers this year, is it’s still going to be a buyer’s market. There’s going to be more foreclosures coming on, coming on the market, which means there’s going to be opportunities for these buyers to get a good deal,” he said.
Sellers will also see benefits down the line.
“The good news for sellers is that the quicker these markets can absorb the foreclosure inventory, those sellers then will be in a position where they don’t have to compete as much with foreclosures if they go to sell their home,” Blomquist added.
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