I have recently come across some statistics that would support the theory that this is a great time to buy. The numbers are
undeniable. For the time period beginning August 29th and ending September 30th, 2011 there were over 5,000 Trustee Sales Scheduled. Out of that more than 1800 of them were either canceled or postponed. Over 35% of the Trustee Sales that were scheduled during that same time frame were canceled for a variety of reasons. The mortgagor ( home owner ) may have become current on their loan, they may have agreed to a Loan Modification or the more likely scenario, the Mortgagor (home Owner) is attempting a Short Sale and the Mortgagee (lender) is giving them more time to work on and complete the Short Sale.
That leaves an additional 3100 plus completed Trustee Sales (Foreclosures). What I found interesting was that 1593 went back to the bank and 1651 were sold at auction on the courthouse steps. So why is that interesting? More than 50% of the completed Trustee Sales were likely bought by investors............
In addition to that we are seeing a shortage of inventory in our MLS, multiple offers on homes and many are selling for more than list price. Kinda feels like 2005 all over again. I believe that the investors have decided that there is a certain part of our market that has hit bottom and it now makes sense for them buy and buy low. We are seeing more properties that are being flipped. This can either be good or bad for the market depending on your point of view. I choose to believe that this is a good thing.
Short Sales and REO (Bank Owned) properties are sold AS IS, leaving the buyers to deal with an assortment of problems and necessary repairs. Those properties that are flipped are often dressed up with cosmetic repairs such as paint and carpet and then put back on the market at a premium. But here is where the opportunity lies for a buyer. Flipps are not usually sold AS IS. Yes, they are paying a higher price for the home. But the buyers now have the opportunity to ask for some repairs to be done by the seller. So, hopefully they are buying a home that is in better condition and requires fewer repairs. Thus bringing up the values and appearance of the neighborhood.
All this along with historically low interest rates.... I think this a great time to buy for first time home buyers.
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