buzz muddleheaded: Foreclosure Activity Continues to Decline Across Bay Area

The supply of homes for sale is already down sixty percent or more around the Bay Area, and it?s probably going to dwindle even lower. ForeclosureRadar is reporting that California foreclosure activity continued to fall in June.

Sean O?Toole adds:

?California Governor Jerry Brown signed into law the Homeowner Bill of Rights, an anti-foreclosure package which naively thinks that slowing foreclosures will benefit homeowners and the economy by leaving those owners stuck in their prison of debt,? stated Sean O?Toole, Founder & CEO of ForeclosureRadar. ?We?ve long said negative equity, not foreclosures, are the problem, and this bill does nothing to truly help underwater borrowers. Fortunately this bill was watered down significantly from its original form, so we don?t expect it will have the same impact that we?ve seen from more aggressive legislation in Nevada. The most ironic part of this bills passage is that foreclosures have already plummeted, and that the real housing crisis in now a lack of homes available for sale. Next spring, we expect there will be half as many REO?s available for sale in California, significantly impacting overall home sales and hurting homebuyers, investors, real estate related services and the economy.?

California Foreclosure Activity