Amid a turbulent economy, indicators from Realty Trends and Zillow predict dramatic shifts in the number of foreclosures and a steadily increasing market value in the Indianapolis MSA. Much is said about the foreclosure rate and how it affects a state’s financial resurgence, and it appears that we are on the way to recovery, with home values stabilizing and the foreclosure rate beginning to collapse.

“…Foreclosures.com released its U.S. Foreclosure Index and found that foreclosures across the United States plummeted by more than 25 percent in January, with many of the hardest-hit states seeing dramatic drops in the number of homes repossessed by lenders. Nationally, the number of completed foreclosures dropped from 97,841 in December to 72,694 in January 2009-the lowest number of completed foreclosures since April 2008. Pre-foreclosure filings – an indicator of future completed foreclosures – also dropped 12 percent, and foreclosure filings decreased 10 percent in January 2009, according to RealtyTrac…”

Some of the areas toughest hit by foreclosures are starting a comeback.

…Homes sales are picking up particularly in areas that were affected the earliest and had some of the worst foreclosure rates. As affordability climbs and home prices become attractive relative to employment and incomes in a market, housing sales rise. …Zillow report states, that in the short term most people are realistic as to current values in the market, they are equally optimistic about the value of homes over the longer term…

Further supporting this attitude among consumers were the findings in a  report in which homeowners continue to express their confidence in their investments.

…more than two-thirds (70 percent) of homeowners believe their home’s value will either increase or stay the same in the first six months of 2009…

Submitted by Dan Moriarty