Two years ago, it seemed like every other Albuquerque house that I was showing was an REO home. REO stands for Real Estate Owned, and it's what a home is called after it's gone through the foreclosure process and been repossessed by the bank.
Now I'm rarely showing them, so I thought it would be interesting to look at some of the sales stats.
Indeed, REO inventory has been on the steady decline for two years. Here's a graph that represents the decline of foreclosures or bank owned home on the market:
As you can see above, the REO inventory has been declining steadily for eight consecutive months. The number of bank owned homes for sale is down 45% over the last two years and 31% over the last year.
The total number of short sale homes on the market have been in decline as well:
These are both positive signs for the Albuquerque real estate market, because as the number of available short sales and foreclosures decrease, so does the downward pricing pressure that they create. For regular home owners who have to sell, this means less competition from the greatly reduced foreclosures. Combine this with fewer homes on the market, low rates, pent up buyer demand and loosening loan standards rumored to begin in October, and the future of real estate for Albuquerque home owners is looking up.