Quick read from the Times today: “As Lenders Hold Homes in Foreclosure, Sales Are Hurt.” The gist: Banks and other lenders own more than 872,000 homes in the country, thanks to all those foreclosures. More are in the pipeline. That pushes down prices, and therefore property values. More people are underwater, which means more foreclosures… you get the idea.
Over all, economists project that it would take about three years for lenders to sell their backlog of foreclosed homes. As a result, home values nationally could fall 5 percent by the end of 2011, according to Moody’s, and rise only modestly over the following year.