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Foreclosure Sales Still Abundant in the Real Estate Market

May 27, 2011 By Leave a Comment

Foreclosure Sales Still Abundant in the Real Estate Market . . .

Bank owned properties accounted for 28% of all home sales within the first quarter of 2011 even though the sale of foreclosed homes declined.  This rate is nearly six times higher than a normal housing market should be. 

Realty Trac Inc stated on May 26th that foreclosure sales hit the highest level of overall sales within a year during the first quarter nationally and also stated that the percentage of homes sold in foreclosure should be below 5%–in a normal market.

The sale of foreclosed homes in California accounted for 45% of all of the home sales within the first 3 months of 2011—down from 48% in 2010.  Foreclosed properties sold for roughly 34% less than the average sale price of non-distressed property.  Foreclosure sales in Arizona accounted for 45% of the overall sales in the first quarter—down 2 percentage points from 2010.

Numerous other states had sales of foreclosed property which accounted for ¼ of the sales of homes in the first quarter of 2011:  Florida, Michigan, Oregon, Virginia, Colorado, Illinois, Georgia, Ohio and Idaho.

Court delays have caused the pace of the foreclosure process to slow in the past months.  However, distressed homes and property remain within the housing market.  The homes, as mentioned previously, are often in need of repair and sell at a substantial discount.  This, of course, weakens prices for alternate homes for sale.

In the first quarter nationally, 158,434 distressed homes were sold.  This is down 16% from the last 3 months of 2010 and down 36 percent from a year ago.  Even though the sale of bank-owned properties declined, this still accounted for almost 19% of all sales—up from 17% in the fourth quarter of 2010.

There are still 872,000 homes that are being held by lenders yet still need to be sold.  At the current pace it will take 3 years to clear the inventory of 1.0 million homes for sale already in a certain stage of foreclosure.  This amounts to a 2 year supply for bank owned property alone.

Home Buyers saved an average of 35% when purchasing bank owned homes.  This discount is unchanged from the previous quarter.

The largest discounts on foreclosure property can be found in Ohio where these homes sold for an average of 41% less than non-distressed homes for sale.

Nevada, who led the United States in foreclosure sales, showed that 53% of homes that were sold were distressed (bank owned or short sale).  Nevada has an inventory of 28,000 bank owned properties currently on the market or scheduled to hit the market.

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DISTRESSED SALE STATISTICS

August 10, 2010 By Leave a Comment
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Pioneer Title launches new tracking tool

June 24, 2010 By Leave a Comment

Pioneer Title Co. is launching its own PTC Index. It is a monthly measurement of the Treasure Valley real estate market. The index combines nine critical measurements of the real estate market into a single number. Those figures are based on a custom-weighted algorithm.

The goal of the index, according to Pioneer Title, is to give industry professionals, media, and the public a sense of the market’s vitality at any given time. By measuring current data over time and against historical averages, the company hopes to provide context to the recent turbulent real estate market.

“We’ve spent more than six months creating and calibrating the PTC index,” said Tim Bundgard, president of Pioneer Title.

Culled from various private and public sources, it takes into account variables such as new home sales, days on the market and notices of default, and building permits.

“If it were human, it’d show we are having a heart attack,” Bundgard said as he pointed to the chart comparing 2005 to 2010.

The PTC Index and corresponding analysis will be published monthly on Pioneer Title’s corporate Web site, as well as PTCindex.com.

“Our hope is that real estate agents, developers, and others will find it a useful tool to add to their decision-making process,” Bundgard said.

Additionally, it will also be published in Idaho Economic Indicators, a quarterly publication of the Idaho Business Review.

Source:  IBR

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Buyers and Sellers Resource Guide

April 22, 2010 By 1 Comment

There has been a lot of recent banter that the housing market is rebounding.  Others have said that while that may be true there is still a looming 2nd wave of foreclosures.  The second wave of home foreclosures that is potentially coming down the pipe has experts suggesting that even more borrowers could be affected.  Luckily we’re better armed with information to make this second wave a bit less crushing.  This resource guide should help both buyers and sellers during the possible 2nd wave of bank foreclosures.

The 2010 Foreclosure Problem

The first round of repossessed homes was in large part borrowers with adjustable rate mortgages, subprime mortgages, and investors who purchased too many homes at once.  This second round of home foreclosures is expected to affect borrowers who might have decent interest rates and loan terms, but just simply cannot afford to pay their mortgage.  Homeowners who have been in their homes for 10+ years but who are now struggling to pay for them due to unemployment are one subset of this expected group of the affected. The good news is that we’re better prepared for it now.  There are resources that can help you during this time whether you need to sell a foreclosed property or want to take advantage of the option to purchase one.

Resources for Sellers

If your home is nearing foreclosure and you want to try to sell it, you need to fully understand the process of selling a foreclosing property.  These resources can help.

  1. How to Sell Your Home Fast When Foreclosure Looms.  This post provides great tips for sellers who may face foreclosure in the months to come.  It describes how to understand the true value of your home at this time as well as who you should align yourself with.
  2. Our very own site can provide resources for borrowers looking to sell their home before it goes into foreclosure. 
  3. Selling your House in a Sea of Foreclosures.  The authors of this article understand that you are not the only person selling your  home right now.  With so many other people in the same boat, you need to make your home sale stand out. 
  4. How to Sell Your House Before Foreclosure.  This basic how-to article provides a simple set of six steps that will allow you to get a great overview of the process of selling a home.
  5. Pre-Sale Foreclosure FAQ.  What are the questions that you might have before you sell your home which may be nearing foreclosure?  This article anticipates those questions and answers them for you.
  6. Avoiding Foreclosure. You might not have to sell your home after all.  You may be able to avoid foreclosure altogether.  This page from HUD.gov educates you about how to do that.

Resources for Buyers

Buying a foreclosed home can be a terrific investment.  However, you need to know what you’re getting into.  These resources found below should assist you:

  1. The Safest Ways to Buy Foreclosures. You don’t want to take any risks when buying a foreclosed home.  This article provides information that will keep you safe.
  2. How to Buy a HUD Home.  This article anticipates the questions that new buyers might have about purchasing a government-owned foreclosed home. The answers are contained within the site.
  3. How to Buy Foreclosures.  RealtyTrac offers a great five-step plan to buying foreclosed homes.  Their article provides an overview of the process as well as detailed information about what each of the five steps will involve.
  4. How to Buy Foreclosures at an Auction.  There are several different approaches to buying a foreclosed home.  Auction sales are one option.  If that option appeals to you as a buyer then this article is a great resource.

General Resources

Whether you are selling or buying a foreclosed home, there are some basic things that are worth learning. Take a look:

  1. How You Can Take Advantage of Strategic Foreclosures. Our recent blog post discusses strategic foreclosures, and how you can take advantage of others home losses, and gain a beautiful home.
  2. RealtyTrac Foreclosure Guide. This website has a terrific overview of what foreclosure really is and what it means for everyone involved. It defines terms, provides helpful links and really assists you in staying educated through the whole foreclosure process.
  3. FTC Facts for Consumers. Both buyers and sellers should fully understand foreclosure and the steps involved leading up to foreclosure. The FTC provides comprehensive information for consumers about this topic.
  4. Foreclosure Databank. This website has loads of information and listings about current foreclosed homes for sale. This is great for buyers who want to see what is out there but is also useful for sellers who want to gain information about real life foreclosures.
  5. Short Sales and Foreclosures. About.com has a great Home Buying/ Selling portal. Within that portal is loads of information about foreclosures. This information is helpful for both buyers of bank owned homes and sellers at all stages of foreclosure.
  6. Aftershock: Second Wave of Foreclosures Coming. This article will assist you in better understanding what is happening with the current wave of foreclosures. The more you understand this, the better off you’ll be during this tough time.

These resources are all terrific places to start to gain information about buying and selling foreclosures.  However, don’t limit yourself to online information.  Foreclosures have already affected a lot of people including people who you already know.  Speak to the folks in your social network as well as to professionals, such as myself, in the local real estate and mortgage industries to gain additional one-on-one advice about coping with this new wave of foreclosures.

source:  gohoming.com

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