November 1, 2007
The number of U.S. homes in foreclosure more than doubled in the third quarter, a surge that analysts said will likely drive already weak prices even lower in the hardest-hit areas. While that amounts to good news for would-be buyers, it spells trouble for builders with projects languishing on the market and for other homeowners desperate to unload property to avoid foreclosure.
"A wave of foreclosures is not going to be good for the broader market, and it will contribute to the weakness in pricing," said Raphael Bostic, associate director of the Lusk Center for Real Estate at the University of Southern California.