Prices Decline for Suntrust Foreclosures and Other Foreclosure Types

by Peter Vernon on Foreclosures

The prices of houses in Indiana, including Suntrust foreclosures, existing dwellings and other types of distressed homes, have declined in July 2010 when compared with the same period in 2009. According to CoreLogic, prices for all types of homes declined by 1.1% in July, ranking the state 22nd among all U.S. states in terms of highest drops in home prices.

State brokers have reported that four million residential properties, including Indiana foreclosures and existing dwellings, were listed for the month of July. They estimated that the listed properties will take about 12.5 months to be cleared if current selling pace is to be used as basis of estimate.

Meanwhile, prices of houses in Indianapolis recorded a drop of 1.5% for the same month. If Indianapolis foreclosures are taken out of the equation, the price drop for the metro area will only be 0.25%. Analysts have stated that further declines in home prices are required for the housing market to mount a sustainable recovery.

According to them, prices of existing dwellings and foreclosure homes should drop to a level that will effectively herald a clearance in the market. They stated that, even with the level of prices right now, most buyers are still reluctant to make any purchase and most of them are still waiting for prices to drop further.

Predictions regarding prices of residential properties, including existing residences, Suntrust foreclosures and other types of distressed properties, vary from one economist to another. Some expect the prices to fall 5% by 2013, with the succeeding years expected to post annual price increases of 3%.

Meanwhile, other housing market observers are forecasting an 8% decline that will take the prices of dwellings to 2002 levels, which will then be followed by a market recovery that will start in 2014. Most analysts agree though, that once the bottom of the market has been reached, three to four years more are needed for prices to start rising by an average of one to two percent annually.

Other analysts are more worried about the shadow inventory being held by most state housing markets. According to them, there are about eight million foreclosed properties, including Suntrust foreclosures, which will be injected into the market in the coming two to three years, with further 3.8 million held by independent and private home sellers.