August 16th, 2010 12:05 PM

Yep, its true - 1 and 3 homes in the under $200k price point were foreclosures in the second quarter of this year.  Are you sick of hearing about foreclosures, though?  If you're anything like me you're thinking "I get it! There are LOTS of foreclosures! Tell me something NEW!"

 

I like to focus on the positive news first.  The under $200k price point might be riddled with lots of foreclosures - but the $300k - $400k is only 11%! And that number is down from last year's 14.4%....no wonder that $300k price point is moving so well!  Not to mention that the TOTAL foreclosure sales last quarter are down almost 10% from this time last year!.  Put in laymen terms - we went from 1 and 3 homes to 1 and 4 homes (not great, but definitely better!)

 

Of course, positive news is all perception.  If your buddy is looking to buy in the $750k+  price point and says that foreclosure activity is low (only 12.8%) -- tell them to look for "distressed" sales.  We are realizing that the banks don't want to buy back a $1m loan and take on the cleaning, yard maintence, utilities, etc - the banks are actually letting owners stay in the property until they can "short sell" the propery.  A whopping 20% of homes in this price point are distressed!  Which sheds light on why this price point is selling for 70% of original list price....again in laymen terms that means....a $950,000 list price is selling on average for $665,000!!! (now that IS GOOD news if you're a buyer!).

 

There are numerous ways to use this foreclosure/distressed activity in your favor - even if you are a seller. 

 

We have lots more great info coming your way!

 

All the best,

Chrissy

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