Foreclosure-Support.com Releases New Details on the Surge in Foreclosure Property Purchases
While most of the real estate world is still reeling from sunken property values and the effects of the housing bubble fallout, one type of property out there remains in hot demand. New statistics released by Foreclosure-Support (www.foreclosure-support.com) show that during the first quarter of 2009, one out of every two home sales in the nation was of a foreclosure or short-sale property. Experts with the company say that this data is indicative of a trend that has been growing among homebuyers for the past two years.
“After the market crashed no one was buying anything,” says Steve Siefken, business analyst for Foreclosure-Support. “But once foreclosures started to come onto the market in bigger and bigger numbers, I think people began to take notice and thought, ’Hey, there’s a potential for deals here.’”
Foreclosure homes often sell for extremely large discounts, especially in areas where there are a lot of foreclosures available. Depending on the property itself and where you’re buying, a foreclosure now goes for anywhere from 10% to 60% off the price it was selling for only a year ago. And even though property values across the country have fallen in that time, investors are snatching up these properties in anticipation of the eventual turn-around, when home prices will again begin climbing.
“At first, it was mostly the professionals at foreclosure auction, just like always,” notes Siefken. “Then we got reports of certain sales in the high-demand areas like Texas, California - they were seeing record turnouts at these sales. But the interesting thing was that even though there was high competition, these properties were still going for way less than what was originally paid for them, so the value’s still there.”
With high-demand areas like Charlotte, NC, Los Angeles, CA, and Miami, FL all reporting significant increases in foreclosure sale attendance, it seems that for savvy buyers more foreclosures actually signify more opportunities for smart investment. But the potential for future value isn’t the only thing attracting buyers either. The federal government recently approved a tax credit of $7,000 to anyone buying a foreclosure home in 2009.
“I think the tax credit really made people realize that this is the time to buy. You’ve got homes selling for half of what they are worth, and you’re getting paid by the government just for buying one. There’s just no better deal out there today, it’s really remarkable.”
Foreclosure-Support specializes in providing daily updates of foreclosure listings and foreclosure news and information from across the nation. With over a decade of experience in the foreclosure marketplace, the Foreclosure-Support team helps buyers and investors get a detailed perspective on the foreclosure marketplace so that they can make the most informed and profitable purchases possible. Visit http://www.foreclosure-support.com to explore foreclosures in your area and learn more.
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