Is Now the Time to Invest in Foreclosures?
Source:
http://boiserealestateinfo.net
Publish Date: 7//2009
Now is a perfect time to take advantage of a rare “perfect storm” of real estate dynamics in this unique foreclosure market.
The volume of foreclosure listings grows each day as millions of desperate homeowners and hundreds of banks with swelling portfolios of repossessed properties slash prices and offer incentives to help expedite sales making it possible for potential homebuyers to buy foreclosed real estate at substantial savings.
|
The USA now has an excess inventory of homes listed for sale that is about 10 times the normal amount, and approximately 25 percent of all recent home sales involved foreclosures. Prices have fallen 30 percent or more in popular upscale locations like Florida, California, and New York. Foreclosure activity has increased quarter after quarter, and more than one in every 200 U.S. households received a foreclosure filing during the past three months. But in those cities where foreclosures are hitting an all time high notices were sent to one out of every 40 households.
But banks are preparing for another wave of foreclosures related to prime mortgages – those loans made to borrowers with excellent credit and higher levels of income. In other words, the foreclosure avalanche that began with the demise of the subprime market has now gone mainstream, offering the most lucrative foreclosure buying opportunities in history. Those who take advantage now – while mortgage rates are still low and before the housing market gains traction and heads higher – can capture valuable equity and buy foreclosed real estate wonderfully priced quality homes for a once-in-a-lifetime investment. ### |
High rates of foreclosure are found in all types of neighborhoods, and top foreclosure cities include Phoenix, Detroit, Las Vegas, Miami, and San Diego. Luxury homes are in foreclosure in Hawaii, 