Valerie McNeal, CDPE, CRS, GRI
RE/MAX 1st Choice
FORECLOSURE FORECAST
4.3% of US homes are currently in Foreclosure.
8.86% of US homes are at least 30 days in Default according the Mortgage Bankers Association. We have a total of 9,555,000 of homes in Distress.
5 Year Arms are coming to maturity within the next 8 months. Currently, there are at least 3 to 3 and half years of REO Inventory on the market. Prices are at the bottom and may fluctuate between possibly 1-2.5%. "The Recession is a terrible thing to waste", says Brian Buffini, Real Estate Agent Trainer. Prices are prime for real estate investors looking for deals on REOs. Short Sales should also be considered; the process is continually being tweaked to shorten the time it takes to settle and should be another avenue for investors to seriously consider.
Sales in July rose for the fourth straight month to hit an annual rate of 5.24 million units, the highest rate since August 2007, the National Association of Realtors said, beating market expectations for a 5 million unit pace. Sales in June had been at a 4.89 million pace. July's increase was the largest monthly gain since the series started in 1999. "The housing market has decisively turned for the better. We are bouncing back," NAR chief economist Lawrence Yun told reporters. The national median home price was $178,400 in July, down 15.1 percent from the same period last year, weighed down by
distressed sales as they typically sell for 15 to 20 percent less than traditional homes.
Cash offers close quickly and easily, while offers with a mortgage can often take 45 days or longer to close and can fall through if the financing hits any snags. All-cash sales are most common where prices are low and bank-owned properties account for the lion's share of listings.
Valerie McNeal is a Certified Distressed Property Expert and Residential Specialist at RE/MAX 1st Choice in Baltimore County, MD.
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