Foreclosure Inventory Drops, what does that mean for home buyers

Reports show that foreclosure inventory continues to drop, there are fewer foreclosures on the market. 

It has been reported that July saw 45, 000 completed foreclosures compared to about 57,000 last year during the same time period. Over the last 18 months foreclosures inventory is reportedly dropped. 

What does this mean to homebuyers? Fewer foreclosures could help inflate the price of homes as foreclosures tend to bring down the value of those homes in the surrounding area. Foreclosed homes are not always well-kept and maintained and can bring a neighborhoods curb appeal down. Also, fewer foreclosures can price many potential buyers out of the market if demand drives up prices. 

The shortage of inventory on the low end market can price out first time homebuyers and those in retirement. Homes on the lower end of the market that were affordable are not being put on the market in the same numbers. 

Rising prices with the potential for higher mortgage rates in the next year, as the Federal Reserve winds down its bond stimulus, which has kept interest rates low, can pose additional hurdles for many new homebuyers.