Maybe you’ve been thinking about purchasing a foreclosed property as an investment, or simply as home sweet home. If so, you’re not alone. A lot of people have jumped off the fence in recent months and are now out in force, scouting for bargains among distressed properties. Here’s a quick rundown in what you can expect to see in today’s housing market.
- Fewer foreclosures. In most areas of the country, the foreclosure crisis is starting to taper off. Banks are no longer dumping huge quantities of bank-owned real estate (REOs) on the market. In most markets, that’s now slowed to a trickle.
- More competition. Many aspiring homeowners were waiting for sure signs that the housing market was beginning to recover, before looking to buy a home, whether or not it’s a distressed sale. Now, there’s ample evidence to suggest that the housing recovery has changed the landscape for prospective homebuyers. As a result, there are growing numbers of serious homebuyers: Both investors with cash, as well as those who plan to take on a mortgage.
- Higher prices. Lower supply and higher demand translates to higher prices. Increasing competition among prospective buyers — welcomed by those in the pin-stripped suits —now means the nation’s banks will command higher prices for their REOs. More instances of multiple offers tendered for the same property continues to put upward pressure on prices.
If you’re thinking of buying, get pre-approved for a mortgage as soon as possible, then find a good Realtor. And, get out there and see what’s for sale!