No Authoritative Estimate of Total Foreclosures

How many foreclosed homes are really out there? No one can say for sure, but the number seems to be somewhere between 500,000 and 1 million. To date, no one has been able to track the total number of properties owned by banks, the U.S. Department of Housing and Urban Development, and mortgage investors. Here are a few approximations: • Barclays Capital uses foreclosure data from mortgage securities to estimate that there are slightly more than 600,000 homes in the process of foreclosure. • RealtyTrac, which examines public records, estimates the number is closer to 700,000. • Independent housing economist Tom Lawler combines data from Fannie Mae, Freddie Mac, the Federal Housing Administration, Federal Deposit Insurance Corp., and securitization trusts to conclude that there are actually about 500,000. Source: The Wall Street Journal, James R. Hagerty (03/19/2010)

Sam Zell: Recovery Is Underway

Sam Zell, the billionaire investor who made his fortune in real estate, told Bloomberg News yesterday that he expects the U.S. housing market to start recovering at the end of 2010 and strengthen in the middle of 2011.

Zell, who according to the Forbes’ tally is the 237^th richest person in the world, said, “Conditions are getting better, but there’s a lot of uncertainty. The real question is: Can confidence return enough so that what you call the green shoots can continue forward?”

Zell said he expects more turmoil in the commercial real estate business, pointing toward General Growth Properties Inc., the mall owner that is fighting a takeover, as an example.

Source: Bloomberg, Rita Nazareth (03/16/2010)