Are we in the eye of the real estate storm?

In an earlier post I wrote about the foreclosure market grinding to a halt as the system becomes overloaded with distressed properties, Today I saw a post on Twitter by @northatlnews pointing out a related article in today’s Atlanta Journal Constitution.

The article notes that the foreclosure rate in the north Alanta metro area during the first six months of 2010 is up 29% over the rate for 2009. That is not good. Even worse is the fact that despite a higher foreclosure rate there are even fewer of these homes selling now. According to the article the actual sales of foreclosed properties have declined by 47%. Foreclosures up 29% and sales of foreclosures down 47% is ominous. You should read the entire article here:

I get the distinct impression that the real estate market has made it half way through a terrible storm and now sits in the relative calm of the storm’s eye. The problem is that we won’t be out of the storm until we break on through to the other side. I hope I am wrong.

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