Foreclosure discounts may not be gone for good but they are drying up fast, according to the latest housing reports. The discounts on foreclosed homes compared to other homes has fallen to a 12% average which is about the same percentage as prior to the housing crash. Last year the foreclosure discount averaged about 30%. There are several factors affecting the trend of foreclosures falling, including less foreclosure starts(new foreclosures being filed), ultra-low mortgage interest rates and moderate job growth are all contributing factor for the trend.
What does this mean for home buyers in todays difficult buyers market? With the number of bank owned homes available for sale at an all time low, many buyers are turning to short sales to find deeper discounts. The Florida REALTORS January 2013 Monthly Market Summary reveals that median price for short sale homes is $61,000 which is less than median sales price for foreclosures at $62,500. According to these numbers short sales are a better bargain for buyers but come with many more challenges than foreclosures.
Need Help? Find a local REALTOR and they can help you assist in finding the best solutions and course of action to help in the home buying process.
Next week we will discuss what this means for current and future sellers entering the market.
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