Foreclosure Increase Induced by Moratorium?

Despite an increase in foreclosure starts in May, there is evidence that the Real Estate Market is indeed on the mend. Most likely, this jump in activity is due to the banks having just finished a moratorium, while they settled the $25 Billion government reimbursement legislature.  It's no different than many other spikes after other previous moratorium  that banks have either self enforced or government imposed.  It seemed like more of a hesitation than a true moratorium this time around, and this isn't the same market as 2011 or 2010. It's quite a bit healthier indeed.

Before we get our panties in a bunch it is important to note the reasons for this increase:

1. The jump in foreclosure starts is not indicative of a new batch of borrowers missing payments.  In fact, new delinquencies fell during Q1 2012.
2. Many "Shadow inventory" homes that banks have been holding onto during the "moratorium" will be hitting a much stronger market of already reduced inventory. From my professional experience here in Oregon, many banks are cleaning up the homes and putting them on the market for more money than one would expect, and receiving multiple offers.
3. "The May numbers were up the month after that settlement was completed is an indication that lenders are more confident that there are clear ground rules to foreclose now, so they can play by the rules," said Daren Blomquist, RealtyTrac's vice-president.
4. Many of the new foreclosure starts will most likely end in short sales, up 25 percent in the first quarter of 2012 reaching a three-year high. This due to lenders being able to get a higher price in a short sale than if they repossess them and then put them back on the market.

Source: Reuters.com,  U.S. foreclosures up for 1st time in 27 months by Anna Louie Sussman

See Full Article: http://www.reuters.com/article/2012/06/14/usa-housing-realtytrac-idUSL1E8HD88120120614

Our Little City is Growing Big

Out of the 366 metropolitan areas analyzed by the Business Journal, Portland now ranks 22nd largest. It seems that 81 people per day are discovering what we have been fortunate to know all along - Portland pretty much rocks. In just one year, Portland's population increased by 28,704. Hmmmm, I am feeling inspired to perform my own study of the recent transplants to break down the ratio of young professionals versus hipsters. Albeit, according to a recent poll by Yahoo Travel, Portland ranks #2 of America's best cities for hipsters.

Fun facts about the Rose City:

1. The name "Portland" was determined by a toss of a coin by two original settlers Asa Lovejoy of Boston, Massachusetts and Francis Pettygrove of Portland, Maine.  Pettygrove won the toss (best 2 out of 3). Check out the coin, the "Portland Penny" which is on display in the lobby of the Oregon Historical Society.
2. We are truly in "Beervana". Portland is home to 28 breweries, making us the single largest beer-producing city the world - take that Cologne Germany!
3. Oregon is one of two states where you can't pump your own gas - major perk during the rainy season.
4. No sales tax! Although we still pay our share in property and income tax which equates to about the same amount when compared to other states.
5. If you see someone with an umbrella, they are most likely not a local.