Foreclosure activity decreased in April for the seventh straight month, bringing total foreclosure activity to a 40-month low, according to a new report from RealtyTrac.
"This slowdown continues to be largely the result of massive delays in processing foreclosures, rather than the result of a housing recovery that is lifting people out of foreclosure," notes RealtyTrac CEO James Saccacio in a statement.
Certainly there are more foreclosures on the horizon, but this legal bottleneck will be around for awhile. This means that a massive wave of additional inventory will not be hitting the markets during the peak purchasing season. Inventory levels are the key to home prices and any stabilization in those inventory levels regardless of the reason is welcome news to the housing industry even if it is only temporary.
