Throughout 2010 I have kept a close eye on local area foreclosures numbers. Specifically tracking the percent of foreclosure homes in our MLS inventories and the effects those numbers have on our local market for buyer and sellers.
Foreclosures can be very attractive for buyers hunting for a great deal, they often come with deep discounts, selling far beneath the average $/sqft. Along with the great price tag, these homes tend to sell in less time. The average “days on the market” for Lewis County foreclosure homes sold over the last month is 54 days vs. 191 days for non-foreclosure home sales. A smart investor/buyer looking for a great deal, is wise to work with an agent who can keep a constant eye out new arrivals and know the ins and outs of what a typical bank wants to see on an offer. Even in today’s market, getting there early and presenting a flawless offer meeting the lender requirements can make all the difference.
For sellers having a high percent of bank owned foreclosure properties available to buyers, can add to the already tough challenges of selling in today’s market. Competing with the price is an obvious factor. The average $/sqft of foreclosure homes sold over the last 30 days was $67/sqft vs. $112/sqft for the average non-foreclosure homes sales, that makes a significant difference in the price tag, over $67,000 on the typical 1500 sqft home. Although a large number of foreclosure properties are in need of repairs making financing difficult and those don’t always attract the same type of buyer. So many of the available foreclosure homes won’t necessarily compete with the typical seller owned home on the MLS but they are an indicator of overall health of our housing market. Check out todays numbers below.
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