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Foreclosures selling fast and at 20% Off
Finding a good deal on a home is not as easy as it used to be. The housing market has started to recover and pick up steam. Homes for sale are starting to receive multiple bids now instead of not receiving any bids. The Nation Association of Realtors has recently stated though that a potential homebuyer can find a deal on foreclosed homes still or a distressed and that discount is averaging about 20% right now. This is obviously very attractive the all potential homebuyers.
Foreclosures down 25% year over year from 2012
A foreclosure tracking company named Realty Trac, has recently stated in it’s February monthly report that there were 154,000 foreclosure fillings in February. In this case a foreclosure filling is defined as any of: A bank repossession, a scheduled auction for a home, or a default notice on a home.
The important part of this foreclosure filling is looking at the specific numbers associated with a default notice. Default notices are defined as homeowners who are 90 days late on their payment. Once a homeowner becomes 90 days late on their payment mortgage contracts allow lenders to start the foreclosure process. So default notices are important to track because it typically shows how many upcoming foreclosed homes there will be on the overall market down the road. If there are fewer and fewer foreclosed homes ready to hit the market it’s safe to assume that the discount now available on foreclosed may become less and less in the future. With not as many ready made deals on the housing market this could further constrain the over all market.
The housing supply is shrinking
Since late-2011, the U.S. housing market has charted a slow, steady recovery. Low home prices and low mortgage rates, plus the availability of low- and no down payment mortgage programs have helped to build a strong foundation nationwide.
Some cities have shown massive price gains, while some, show little gains at all. Most U.S. markets, though, are benefiting from a combination of a stronger national economy, of rising costs to rent, and of general consumer optimism.
Another telling point : More people believe that “now is a good time to buy” as compared to those who believe “now is a good time to sell”. Buyers see bargains as compared to where home prices may head. Sellers, by contrast, see a light at the end — if they can just wait long enough to list.
The result has been a drop in the supply of homes for sale. At the current pace of sales, today’s entire stock of U.S. home resales and new construction homes would be sold out by July 31, 2013.
Where are all of the Foreclosures
Foreclosures generally area double edged sword. On one side, they are a bad indicator for the overall economy in that area. On the other side, plenty of foreclosures available can help spurn first time home buyers or real estate investors to get off the fence and buy.
If you may be interested in buying a foreclosed home let me help you figure out where a large supply of foreclosed homes are. Realty Trac has recently stated that the state with the most foreclosed homes in it is Florida (13,042). Florida has about twice as many foreclosed homes then the next state which is California (6,549). The third state on the list is Illinois and this state has 5,106 new foreclosure starts.And, of course, like all else in real estate, foreclosures are local. In some states, foreclosures are more common than in others.
Here are the states with the lowest amount of foreclosed homes Vermont, Montana, and Washington, D.C.
Can I afford to buy a Foreclosed Home?
Homebuyers have many options to put low down payments. One popular mortgage product for first time homebuyers is a FHA loan which only requires 3.5% down payment. Other popular options which include no down payment are VA or USDA loans. On other popular mortgage loan for first time homebuyers is 3% down Conventional loan. If you have thought that the time is right to buy a foreclosed home call Riverbank Today at 800-555-2098.