As the housing recovery has moved forward and home prices started to rise, banks have been looking for opportunities to unload their backlog of home inventories and move many of those delinquent borrowers through the pipeline. As home prices spiked in many areas of the country, banks had more opportunities to foreclose on long-delinquent borrowers and sell those homes.
Here in Katy TX, there were only a dozen available foreclosures among the over 650 available listings in the area. Foreclosure inventory has all but dried up, and that’s a big reason why home prices were pushed higher last year, particularly if you were looking for new construction. The Houston area as a whole were only 7.9 percent of sales in November 2013. The days of cheap foreclosures where bargains were plentiful are long gone. Home buyers and investors will have to wait for the next crop of Katy TX foreclosures to arrive, and buyers will likely have to wait for the shale oil and gas boom to fizzle before that happens.