Real Estate Market Recovery Requires Patience

by on Foreclosure Crisis

Recovery Text on a Black Board

If you live in states like Florida, you are more than likely frustrated (and are possibly becoming jaded) by the continuous reports of national real estate market recovery. The fact of the matter is real estate market recovery is underway, but not in every part of the country.

Some states, especially those with a judicial foreclosure process, are still lagging behind other areas when it comes to real estate market growth. In fact, if you take a look at many of the states with a judicial foreclosure process you will see the exact opposite of recovery – you will see a high foreclosure rate, depleted home prices, and very little signs of real estate market growth.

Why, exactly are these areas still suffering? The main reason is due to the delay that the judicial foreclosure process caused. While other states – those with a non-judicial foreclosure process – were experiencing rapidly falling home prices and record high numbers of foreclosures, judicial foreclosure states were lagging behind due to the fact that every foreclosure had to appear before a judge.

As a result, judicial foreclosure states are just now experiencing what many states were facing over a year ago – struggle. Now, many of the non-judicial foreclosure states are starting to move toward recovery, while many of the judicial foreclosure states are still drowning.

Light at the End of the Tunnel

Residents (and real estate professionals) in judicial foreclosure states have to hold onto the hope of real estate market progress and recovery by looking at the progress other states are making throughout the country. Consumer confidence is rising, investors are snatching up foreclosures and other discounted properties from the market, those with underwater mortgages are starting to see relief, home prices are rising, and talks of commercial real estate market progress (albeit uneven progress) are developing.

Overall, the nation as a whole is making progress toward recovery and residents of states that are still struggling to see the light at the end of the tunnel must remain hopeful and have patience. Real estate market recovery takes time and although it is often discouraging to see other states starting to see relief and making progress, it is essential to remember that just as these states recovered, so will your state.

At the end of the day, real estate market recovery is underway nationally and although some states are still unable to see real, effective recovery locally, they too will see the positive signs of growth in the near future. Until then, all these struggling residents can do is keep faith and remain patient – remembering that recovery is just around the corner.