Austin foreclosures are down, so what?

Last week the local foreclosure statistics were released. The news was amazing in some regards. In fact, I was interviewed by a reporter from KUT about the fact the foreclosures were down, and down significantly, 28%, in Round Rock. One of the reporter’s questions was a good one: Does this have a direct impact on our real estate market?

Well, welcome to the complicated world of Real Estate. Impact, yes. Direct, no. It is the report of one quarter so it could be an aberration. The pessimists want to believe the worst, so it is definitely a blip to them, but is a positive sign to others for a couple reasons. First, it means there is less inventory. Second, specifically there is less bargain inventory. And third, it is more evidence that we have turned the corner in the market. Why are they down? Some part of it is that federal programs and banks are helping people stay in their homes. Also, the better economy locally means that some people can manage their payments better. Remember that posting is not necessarily a foreclosure and many properties are posted several times before getting to the courthouse steps. Here are links to the KUT story and the foreclosure info.