Call 480-478-0709
or fill in the fields below
for a consultation!

Report: Slow Foreclosures and Oversupply Fuel Market Declines

by Heather Hill Cernoch

Backlogged foreclosures, severe oversupply, and negative equity triggered a further decline in home prices in April, according to the latest RPX Monthly Housing Market Report from Radar Logic.

The New York-based real estate data and analytics company tracks home prices in 25 major metropolitan areas across the country. Its latest index recorded a decline in the composite reading of 5.1 percent in April when compared to April 2010.

“Clearly, the very large supply of homes for sale or potentially for sale is weighing heavily on the market,” said Michael Feder, president and CEO of Radar Logic.

“Perhaps more worrisome,” Feder continued, “is the clearly established discount on distressed properties. Reason would suggest this discount reflects the level at which buyers are comfortable they can achieve a reasonable rate of return. We expect this situation will continue for some time and will deter any truly robust economic recovery.”