Foreclosures For Sale In Montgomery County, Maryland
Everybody loves bargains and during the last several years, the inventory of lender owned foreclosures in Montgomery County, Maryland has provided many bargain opportunities for home buyers and real estate investors.
However, the inventory has changed and it is a good time to take a look at what is currently available. Today, there are 2,567 homes for sale that are actively listed on the multiple listing service, MRIS. 255 (9.93%) of the homes for sale are short sale pre-foreclosures. 30 (1.17%) of the homes for sale are lender owned foreclosures.
The first observation is that the overall inventory is low for an area that has a population of almost a million residents. The major factor for the low inventory appears to be that prospective home sellers are waiting for prices to reach a higher level before putting their homes on the market. Even though the market has firmed up, prices are still somewhat lower then they were in the peak years of 2005-2007.
The inventory of short sale pre-foreclosures is now below 10% of the inventory after hovering in the 20% level for a long period of time. Experience has shown that a high percentage of the short sale offering will never reach settlement because of the failure to obtain the needed approval of the secured mortgage lenders to accept less than the amount of the outstanding mortgages. Many prospective purchasers still do not wish to consider short sales during their home searches.
Real estate investors are complaining about the lack of acceptable purchase opportunities in Montgomery County due to the very small number of lender owned foreclosures that are available and the fact that they face multiple contract competition with many of the available properties. The result is that some investors are turning to opportunities in other counties and are closely watching for opportunities at the trustee sales at the courthouse steps.
Prospective home buyers and real estate investors are faced with a shortage of inventory and much competition in the local market. Cash is king and contracts with few contingencies are likely to be characteristics for successful purchases.
Yes, from the perspective of purchasers, we have a shortage of available foreclosures in the market. 30 lender owned foreclosures is not enough to satisfy the market demand in Montgomery County. Our advice to prospective buyers is to select an exclusive buyer agent that really knows the local market and to make very realistic offers on the available properties. Those that plan to use mortgage financing should have a lender letter in hand.
When considering specific communities for purchase opportunities, we always advise prospective purchasers to get out of their automobiles and take a closer look by walking through the are to observe the neighborhood. The pride of ownership and the character of the neighborhood will have a major impact on the long term values.
Photowalking through a community also gives you a little exercise that most of us need and an opportunity to enjoy the colors of the season. Focusing your camera on a beautiful flower is a good way to set aside the stress of the moment.
Kentlands, Spring Flowers IMG_1437
Photograph by Roy Kelley using a Canon PowerShot G11 camera.
Roy and Dolores Kelley Photographs