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According to Zillow.com home values fell 12% in the second quarter compared to one year ago. However, the rate of decreasing values has slowed dramatically for the first time since the fall of 2007. Home values have declined for the tenth straight quarter with an average home value of $186,900.00.
Home prices have not yet leveled out. According to L.A. based Foreclosure-Support their research shows that during the first quarter of 2009 one out of every 2 homes was a short sale or a foreclosure sale. Foreclosure and short sales have now accounted for nearly half of all home sales.
This trend will continue as long as there are still foreclosures in the pipeline of lenders and banks that have a backlog of properties that are awaiting foreclosure or re-modification decisions from banks. This trend of foreclosures will continue and has been present in our real estate market for the past two years.
When the housing crisis first began potential buyers were shell shocked and were not quick to make decisions or purchases. After foreclosures began and properties started to infiltrate the market many homeowners and investors alike realized the potential to find great deals on property.
Foreclosure homes sell anywhere from 10% to 60% of the sales price for the same property one year ago. A lot has to do with the market the property is located in. For example, foreclosure homes selling in areas with relatively low or no other foreclosure properties will sell at a relatively high price in comparison to those properties that sell in areas where there is an abundance of foreclosure properties driving the sales price down.
High demand areas such as Los Angeles, North Carolina and most notably Miami, FL have reported a big increase in foreclosure sales, proof that buyers are ready, willing and able to purchase these homes and are just waiting for the market to level out – or wait for that next great deal.
For more information on foreclosure properties in South Florida and the latest foreclosure news and trends check back with us at http://www.gsigllc.com/
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