Buying a Foreclosed Property: What Homeowners Need to Know

Low interest rates and significantly-discounted prices make it a great time to purchase a home in most regions. Orange County is experiencing an unusually low inventory that is bringing the return of multiple offer situations for well-priced listings.

Housing prices are still below their peak in 2006, and another wave of foreclosed properties is expected to hit the housing market this year as banks unload their backlog—offering homes at low prices.

“Home prices will continue to be very fragile,” says Daren Blomquist, vice president at RealtyTrac. “We don’t expect prices to fall another 20% to 30%, but there won’t be a recovery until the distressed inventory has cleared.”

RealtyTrac estimates that home prices will start to increase once banks clear their 17-month inventory of foreclosed properties. The national average of prices for foreclosed (real estate owned or bank-owned) properties at $152,465 continues to be lower than the sales price for all properties (including foreclosure and non-foreclosure) at $203,779, according to RealtyTrac.

 

For full article click here: Fox Business News

Posted on March 30, 2012 at 4:51 pm
Nancy Low | Category: Buyers, News

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