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In February, the company’s head of retail financial services, Charlie Scharf, advised investors that in most major markets, bank-owned real estate as a percentage of total home sales will remain high. His forecast for the Chicago area was that bank-owned homes, called REO properties, will be from 21 percent to 28 percent of total sales in late 2012. That compares with 33 percent in the second quarter for 2009 and 28 percent in the fourth quarter of 2009.
I reported in Sunday’s paper on evidence that a “second wave” of foreclosures is coming. JPMorgan‘s estimates of REO sales predict no meaningful improvement in Chicago for two more years. Even the low end of its REO percentage is high for the market. Bank foreclosures sell for around 40 percent less than homes sold the conventional way and are dragging down prices throughout the city and suburbs.
Read more from the Sun Times
Related around the web
- Foreclosures Up in 75% of Top Metro Areas (foxbusiness.com)
I have been warning all my sellers this was coming and to get their home sold NOW! The general public is just not getting the right information via the media.