Foreclosures Still Dragging Housing Market Down

Cities where the average person could never afford a home are seeing record low prices and mortgage interest rates are at a 60 year low.  This would lead you to believe that there may be a light at the end of these dark real estate market times.  Unfortunately this is not the case. The number of foreclosures in most American cities continues to drag home prices down and is playing a major role in keeping the real estate market from rebounding.  There are currently millions of home loans that are delinquent in the country and a good four million more that are at least 90 days past-due and most likely headed for foreclosure.  RealtyTrac reports that 1/3 of home sales in 2010 were short sales and foreclosures at an average discount of 26%.  In October concerns over foreclosure processing put a halt to many foreclosures as the need to investigate arose.  If this process takes awhile, the more foreclosed properties will pile up and when they do finally hit the market it will depress prices even more.  Add these issues to the high unemployment rates and it would appear that we are far from seeing any kind of improvement in the housing market anytime soon.