I just posted an article at AustinMarketInfo.com discussing a dramatic decrease in foreclosure sales in Austin:
That 37% drop is from 3Q '09 to 3Q '10. Foreclosure sales fell 35% from 2nd quarter 2010 to 3rd quarter 2010. Undoubtedly there is some bias in these numbers because the second half of 2009 and the second quarter of 2010 offered homebuyer tax credits. That said, it's also important to note that total home sales fell 25% from 3Q '09 to 3Q '10 and 30% from 2Q '10 to 3Q '10. Still foreclosure sales dropped faster.
Important point for comparison: "Foreclosure sales accounted for 9.5 percent of all residential sales in Austin in the third quarter, Irvine, Calif.-based RealtyTrac reported."
Considering the U.S. foreclosure sales picture, RISMedia includes this article today:
Yes, that's a 10% proportion in Austin and 25% nationwide!
But consider these figures -- the percentage of home sales that were foreclosures in the third quarter of 2010 in:
Nevada -- 54%
Arizona -- 47%
California -- 40%
Florida -- 37%
Massachusetts -- 35%
Michigan -- 32%
Georgia -- 29%
Oregon -- 27%
Please don't misunderstand: This is very painful for everyone involved in those places and many others. There is no gloating involved in making this comparison. The recovery of the entire U.S. economy depends on all of these market areas regaining their health.
Even with our own issues in the Austin/Central Texas real estate market, though, this contrast is really striking. It also helps to explain why property values have remained relatively healthy here. The Longhorns aren't the only reason to be glad to live in Austin!