subject: Increase In Bank Foreclosure Listings Attract Homebuyers [print this page] In areas around the country where Bank Foreclosure Listings have surged, the number of homebuyers also increased. Ms foreclosures, is just one example of such an area (Mississippi). This is credited to several factors: low market values, a federal tax credit given to first-time homebuyers amounting to $8,000 and the lowered interest rates. The amount of people aggressively seeking out foreclosed homes levels to the number of speculators during the housing boom several years back. If you are living in places where news on foreclosures is heard, you will be expecting to observe a lot of homebuyers looking out houses in your area.
Buyers who just disappeared for years have increased in number to places with utmost foreclosure rates such as Phoenix in Arizona, South Florida, Las Vegas in Nevada, and Riverside and San Bernardino in South California. MS foreclosure rates also continue to increase.
Multiple bids among buyers are becoming a common occurrence as they try to compete with each other in acquiring properties listed under Bank Foreclosures because prices of these homes have dropped 50 percent from their original value.
Based on the latest data, foreclosed properties account to 40 percent to 80 percent of the bank's Foreclosure Listings. Most of the properties on the list are being sold at prices that only equals to the total amount spent on construction.
Industry experts stated that homeowners who try to sell their properties might encounter difficulties due to the competition where in the increase number of foreclosed properties in the bank is traded in markets. This may result to further foreclosure news since these troubled homeowners will not be able to sell their properties to cover mortgage payments.
A third of the total home sales in May are accounted to foreclosed properties which, in turn, affected the median price of homes at the present. The National Association of realtors said that there was a percentage drop in Median home price compared to the preceding year. It dropped 16.8% down to $173,000.
In 2008, Miami and Florida topped the list of states where home sale prices dropped by 30 percent based on first quarter estimates.
Properties in Bank Foreclosure Listings' trading prices in countries such as Riverside and San Bernardino were similar to values 8 years ago (2000). While in South Florida and Las Vegas, prices of foreclosed homes were similar to that in 2003.
Because unemployment rates keeps on increasing in addition to higher attuned mortgage rates, recovery is still quite not reachable in the housing market. These issues would absolutely give rise to more foreclosure news someday.
by: Michael Bartonolis
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