I am often approached buy investor Buyers looking for that “STEAL OF A DEAL” foreclosure. Given the nature of investors that equates to pennies on the dollar. That was the case after the bubble burst in 2006. Lots of foreclosures hit the Nation’s market place and investors rushed to reap the benefits.
Not so is the case today. Redding for example of available foreclosures is slowly on the decline. Nation wide the Foreclosures continue to fall across the country and the return to normal levels may be on the horizon for many places, according to a new report.
Foreclosure filings fell 4 percent in February, reaching the lowest level since July 2006, according to RealtyTrac’s U.S. Foreclosure Market Report. Foreclosure filings reflect the number of default notices, scheduled auctions, and bank repossessions. The U.S. foreclosure rate now stands at one in every 1,295 homes that received a foreclosure filing in February. This statistic is more consistent in respect to the Redding area.
On the contrary there area areas that show a rise in inventory of foreclosures on the horizon. Once again the old real estate cliche that the market conditions vary from region to region across the U.S. is vindicated.
The following states posted the nation’s highest foreclosure rates: Source: Realty Track
1. Maryland: 1 in every 564 housing units received a foreclosure filing in February (foreclosure activity has fallen 1 percent compared to a year ago there, however)
2. Nevada: 1 in every 569 homes received a foreclosure filing (a 12 percent rise from a year ago mostly from a rise in foreclosure starts)
3. Florida: 1 in every 570 housing units (despite a 35 percent decrease in foreclosure activity compared to a year ago)
4. Indiana: 1 in every 871 housing units
5. Idaho: 1 in every 877 housing units
6. New Jersey: 1 in every 895 housing units
7. Illinois: 1 in every 906 housing units
8. Delaware: 1 in every 957 housing units
9. Ohio: 1 in every 1,000 housing units
10. North Carolina: 1 in every 1,088 housing units:
I’m currently working with an investor who is beginning to understand that Redding’s foreclosure inventory is dwindling and the opportunities of profiting are weakening. We’ve previewed a number of properties where the numbers just don’t work. It’s also become very competitive in the market place driving foreclosure prices up a bit. Multiple offers above asking price are occurring on some properties making profit margins even more lean.
I don’t see the Redding foreclosure market to disappear over night but rather see it slowly get to a normal flow. Foreclosures historically will always have their place in real estate and that is a fact. “Another man’s loss is another man’s gain”.