Many of my clients looking to buy are asking about foreclosures and short sales. With nearly 25% of all home sales in the US being a foreclosure during the second quarter of 2010, it does not seem like my experience is unusual.
How much longer can we expect high levels of foreclosure activity? According to Realty Trac, the market is on pace to work through distressed properties in about three years. Realty Trac thinks the distressed inventory will largely be worked through by the end of 2013.
How much of a discount to market is the buyer getting with a foreclosure? The latest data suggests a 26% discount when compared with homes not in the foreclosure process. During 1Q:10 homes in foreclosure sold for 27% below the market, according to industry data. So we can see, there's not much movement in price discount.
Is the percentage discount the same in every US home market? No. The highest discounts were in Ohio, Kentucky and California-- at about a 43% discount. So, you need to know your local market trends.
Lenders are expected to take over a record 1.2 million homes in 2010; this compares with around 1 million last year. To give an frame of reference, there were about 100,000 foreclosures in 2005 before the housing bust. And in a normal market, foreclosures account for less than 5% of sales, according to Realty Trac.
Individual markets and submarkets are important to follow when you are looking to buy or sell a home. A person who understands these markets is very important when taking on a big decision, such as buying or selling a home.
If you are looking to buy, sell, rent or invest in the South Florida real estate market, please feel free to contact me.
Michael Friedman
Realtor, Certified Distressed Property Expert (CDPE)
Lang Realty
561-989-2100
http://michaelfriedman.rmlsfl.mlxchange.com/?Page=7395217 <--property search link to cut and paste into your Web browser
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