Continuing Foreclosures Leading to Price Slump

"Foreclosures are continuing and this is causing price slump in real estate. Pacific Investment Management opines that this situation is not likely to change till the next year has run through mid way. The figures about increase in property value are misleading.

The index of S&P/Case-Shiller tracking 20 metro regions showed that values had increased by 4.8% from May to August. This came after a staggering record fall of 33% from the peak of July 2006. The figures are being wrongly represented by the government in its attempts to bring down the number of foreclosures.

Temporarily it has given a boost to sale of houses said Scott Simon of Pimco. Over a phone interview he said, “It only makes prices look like they’re going up. Think about it this way: If you had 100 percent of the sales as foreclosure sales, prices would look like they went down a ton, and if you had none, prices would look like they went up a ton.”"

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