A recent article for the Express-News discussed how the declining foreclosure rate, both nationally and specifically in San Antonio, might not necessarily be a positive sign.
While fewer foreclosures would signal a return in consumers' financial strength, it could also mean that the foreclosure process has changed and become more strictly regulated. Thus, the rate would be slower, but not necessarily an indicator of better market health.
"What we've had is a slowdown in foreclosure activity because of the robo-signing scandal," James Gaines, research economist with the Real Estate Center at Texas A&M University, told the news source. "Maybe we shouldn't jump to conclusions that all is well and getting better yet."
Furthermore, another expert relayed that there's no current economic news that would signal the declining foreclosure trend within 2011. Yet, he also stated that locally, San Antonio, Dallas and Houston real estate have weathered the national storm better than most national metropolitan areas, and thus, "2011 could be seen as the time the sun started to peek out from behind the clouds," the article states.
With the state's unemployment rate declining in April for the third straight month, consumer confidence could experience enough gains to boost the real estate market soon enough.
Courtesy of 2M Realty News