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Loading ...According to the latest statistics being put out by foreclosure sales reports, foreclosures accounted for 35% of all the sales in the real estate market in the first quarter of this year. Moreover, the average sale price of foreclosed homes is estimated to be 30% below than the average sale price of other residential homes in the market.
As foreclosures are being put up in the market at highly discounted prices, a large number of first time home buyers and young investors are favoring the purchase of these properties like never before. The market is also witnessing a surge of young families and single professionals who are opting for residential homes available for sale under foreclosures as a substitute to rented apartments. One of the prime reasons for this distinct trend in housing is that the current real estate market is offering a large number of homes in the $200,000 -$300,000 bracket which are half of their original prices.
Financial experts are suggesting that the steadily high rate of homes being repossessed by banks is also adding to the low real estate rates prevailing in the market. In order to dispose of foreclosures from their inventory, banks are making special efforts in marketing foreclosed homes by offering low interest loans as well as various cash incentives on closing costs and down payments. This has made REO properties as one of the most viable investment options in today’s market.
First time buyers are also selecting properties which are in the pre-foreclosure stage through short sales which is proving highly convenient for the buyers as well as the sellers. By selling off a foreclosed home through a short sale, lending agencies like banks do not have to go through the time as well as money consuming process of foreclosures. Moreover buyers can also negotiate with the lenders for a lower asking price as well as reduced closing costs especially if the property is a fixer upper home and requires considerable renovation.
Across the country, foreclosures constitute a major part of real estate sales with Nevada foreclosures accounting for 70% of their total sales, the highest in any U.S state so far. California has come up a close second with foreclosures constituting 63% of its real estate sales in the residential sector. Some of the other states where foreclosures accounted for more than 35% of their real estate sales include Arizona, Illinois, Idaho and Colorado.
