Recent Statistics Point to Real Estate Rebound

Numerous signals have showcased the potential fact that the real estate market is now on the rise, especially people looking for Maintenance Free Townhomes.  There has been a swing in regional real estate market improvements across the United States along with a 15% rise in housing starts in September, an increase in builder confidence and a surge in mortgage lending applications (people applying for credit to purchase a home).

Land for sale located within the Great Plains and include Iowa, Louisiana, Texas, Wyoming, Nebraska and the Dakota’s with Bismarck ND are showing the greatest amount of strength and are expecting to be the strongest market w/in the United States this coming year. Many people are looking to build beautiful luxury homes. Others just look for luxury homes for sale or luxury apartments for rent. In fact, Bismarck expects to see 5.6% increase in appreciation according to most statisticians.

Alternate markets expected to see the highest gains in appreciation include Washington DC, Honolulu, Fargo, Pittsburgh, Boston and Harrisburg/Carlisle.

Although the majority of real estate markets are not seeing substantial gains in appreciation, the markets contained within the United States won’t see values fall at rates seen w/in the past 3 years.   Even though the housing recovery is limited to a hand full of markets, the fact that some areas are seeing appreciation is encouraging for those in alternate real estate markets throughout the country.  Some would say that appreciation will begin to trickle down as time progresses.

Nevada, inland areas of California, Oregon and Washington State round of the weakest markets currently within the United States with Bakersfield, California  being the weakest due to a high amount of foreclosures in 2011 and projected foreclosures in 2012.

$20,000 Short Sale Incentive offered by B of A

Bank of America is now offering homeowners located in states with high foreclosure activity up to $20,000 at closing (yes, $20,000) to sell their home as a short sale rather than allowing the home linger within the foreclosure proceedings.

Short sales which qualify for the cash at closing much be submitted for approval to Bank of America prior to November 30, 2011.  The closing must occur prior to August 31, 2012 and the home must not have any offers submitted on it currently.

As most know, a short sale is when the bank or lien holder accepts an offer to purchase for less than what is owed against the home.

The Bank of America strategy which has a minimum “cash at closing” payout of $5,000 is a true incentive to homeowners struggling to make their payment and on the brink of losing their home to foreclosure.

The national average timeline for foreclosure proceedings is 318 days.  This said, B of A providing an incentive will help homeowners receive incentive to sell the home prior to it sitting vacant for months—if not years.  Some call it a relocation fee yet it’s basically a “bribe” to make certain that the home owner leaves the home in good condition.  Some would say that providing an incentive of 20K makes sense considering that the bank may need to pay $20,000 (or more) to fix the home up prior to selling.  You see, in many circumstances the home owner which feels “cheated” by the bank will take /stead appliances, fixtures and intentionally damage the home.

Wells Fargo and Chase have similar programs for short sales which they call “cash for keys”.  In fact, Wells Fargo offers up to $20,000 on eligible short sales which are left in tip-top condition.  Although not advertised, these types of incentives are available w/in states with lengthy foreclosure durations.

In a nut shell, banks are now getting creative in order to get the distressed homes “off the books” and get back to a new normal.