Sales Figures Up But 6 Million Homes Still Facing Foreclosure

Figures from the Commerce Department show new sales of single family homes jumped 14.8% in April to a seasonally adjusted annual rate of 504,000 homes. This increase was on the heels of the biggest monthly increase in 47 years in the month of March.

While these increases may appear to be good news, they were clearly in response to the $8,000 federal home buyer tax credit, and do not reflect the true picture of the housing markets 6 million homes facing foreclosure.

The home sales figures fanned by the home buyer credit will be showing up in housing figures throughout May and June when the spring purchases close their loans. This credit is no longer available as purchase contracts had to be signed in April, except in limited circumstances. But, the increase in sales will allow headlines to be created about the high demand for housing. And, while home sales may have increased, prices for homes are not increasing.

The huge number if distressed properties that are flooding the market are causing the price of home to remain weak. These distressed properties made up one third of home sales in the US earlier this year. Foreclosure auctions are expected to remain high while lenders deal with a backlog of foreclosure properties. Properties that are sold at auction sell for much less and therefore bring down the property values for other homes.

If you are facing foreclosure you have a window of opportunity to save your home but you must act quickly. Now is not the time to be lulled into thinking you can sell your home before the foreclosure sale, not in this market. Take matters into your own hands, get stop foreclosure professional assistance and save your home.