According to recent research from ForeclosureListings.com, there have been decreases in the number of foreclosure filings in each state and increases in prices in many of those same states. That’s the good news, or is it? Well, it is good news for homeowners but yet another reason for real estate investors searching for a good deal to get ‘off the fence.’ These numbers, coupled with my other blog posts from experts and surveys completed by industry groups over the last few months, the time is now to gobble up deeply discounted assets like mortgage notes, REOs and land, whether for home ownership, vacation home, or as an investment.
Further reasons to move ahead: Although fewer foreclosures can help reduce the supply of available homes on the market, the prices are also important. In four out of the five top real estate markets, prices have increased. In both California and Florida, the price increase is less than 1% bringing the average costs to $347,878 and $222,950, respectively. Michigan's home prices went up by 1.4% to $91,614 while the prices in Texas increased by 4.8% to $116,016. Prices actually decreased in Georgia: falling 2.6% to $126,914. The lowest average price for homes, according to ForeclosureListings.com, is $60,940 in Ohio.
Other important stats: in five of the top markets, foreclosure filings have decreased: California (down by nearly 5%), Michigan (down by just over 4%), Florida (down by 8.5%), Arizona (down by 9%), and Texas (down by more than 7%). However, Colorado has seen the largest drop in foreclosures with a decrease of more than 13%. Unfortunately, the statistics are not so promising for all states. West Virginia, for example, saw an increase in foreclosures of more than 17%.
Within these and other key states, the changes in foreclosure filings in major cities also seem to be showing improvement with only a few exceptions. In Phoenix, the number of foreclosures dropped by over 8%, the rates in Memphis fell by nearly 12%, the filings in Miami toppled by just over 14%. Other states also saw a decrease: Atlanta (2%) and Houston (3.7%). However, both Chicago and Detroit saw their rates of foreclosure increase by less than 1% and by just over 5%, respectively.
All these stats, and the availability of promising investment opportunities, makes me wish that I had money to invest. If you do – either cash, IRA funds, 1031 moneys – move it now. You’ll be glad you did.
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