I remember hearing someone say a while back that the American real estate crisis will be near the end when we start seeing homes being demolished. Although very small and in the early stages, it seems that it is starting to happen (h/t The Atlantic):
Bank of America Corp. (BAC), faced with a glut of foreclosed and abandoned houses it can’t sell, has a new tool to get rid of the most decrepit ones: a bulldozer.
The biggest U.S. mortgage servicer will donate 100 foreclosed houses in the Cleveland area and in some cases contribute to their demolition in partnership with a local agency that manages blighted property. The bank has similar plans in Detroit and Chicago, with more cities to come, and Wells Fargo & Co. (WFC), Citigroup Inc. (C), JPMorgan Chase & Co. (JPM) and Fannie Mae are conducting or considering their own programs.
The number of homes in question for demolishion is negligible but, nevertheless, it does indicate that inventory is being taken off the market. Tags: Bank of America, real estate