Location, Location, Location is a mantra repeated over and over and over. And for many parts of the country, the changing of the seasons from Fall to Winter brings a traditional slow down in real estate sales activity. Yet, as the market moves into the 'cold months' in many of America's northern markets, the mantra seems to be Price, Price, Price (with a wink to Location).
Earlier this week, I was chatting with Bardan Azari, Cherry Picker Investments, a Chicago-based foreclosure investment advisory firm, and he noted that there has been a significant increase in foreclosure sales in Northern Illinois. Granted, there are many reasons for this shift, from the wrapping-up for robo-signing, to the year-end push by banks to clear-up their balance sheets for financial reporting, and the natural progression of foreclosure filings. Yet, for those who are buyers, investors and rehabbers with cash or access to cash, "This market already feels like Christmas," said Bardan Azari. "Our typical real estate investment client is on pace to double their success based on the current increase in foreclosure sales in Northern Illinois," said Mr. Azari.
What does all that mean for at least some northern markets in America? It means the cold weather is only a reading of the temperature, but not indicative of the pace of activity for distressed real estate. RealtyTrac, Inc. indicated that "nationally, 230,678 foreclosure filings were reported in October, representing one in every 563 housing units. That's up 7% from the previous month but down 31% from October 2010." So, there are less filings occuring (a good sign for an eventual real estate recovery) and will eventually lead to fewer foreclosure sales.
“The October foreclosure numbers continue to show strong signs that foreclosure activity is coming out of the rain delay we've been in for the past year as lenders corrected foreclosure paperwork and processing problems,” RealtyTrac CEO James Saccacio. Hence, the pace of distressed real estate activity in the hardest-hit markets are seeing an uptick in foreclosure sales from past foreclosure filings.
Michael Hobbs, PahRoo Appraisal & Consultancy
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