As the housing market continues to trudge along, the consensus is that it is getting more and more difficult to find substantial deals with foreclosures. According to FNC, a real estate analytics firm says that the average discount for a foreclosed property used to be 25% and that is no longer.
FNC released their Foreclosure Market Report claiming that the market is stabilizing in many metropolitan areas and foreclosures have reached the lowest they will go. Dr. Yangling Mayer, Senior Research Economist of FNC said, "The fact that we are seeing a combination of rising home prices and a bottoming out of foreclosure prices is a very good sign the housing recovery is taking hold. This is the very first time in the long housing recession that the two are happening at the same time."
According to FNC, the average foreclosure sale right now is $93,000 while the average retail sale of a non-distressed property is almost double, $183,000.
Foreclosures and single family REO’s made up 18% of sales in the 4th quarter. That is much less than the 26.5% in the 1st quarter. Even more in the 4th quarter, the average saving on a foreclosure went down to 12% from 25%.
This is not the case in every market, however Michigan reign supreme in 2012’s 4th quarter foreclosures. 56% of their home sales were foreclosures. Surprisingly the states whose markets were initially crushed were able to maintain steady and a lower percentage of foreclosure sales, like California, Nevada, Arizona and Florida.
One quarter doesn’t tell the entire story of course, so here is a glimpse; Chicago and Detroit were the most underperforming markets in 2012 and Chicago showed the highest foreclosure discounts.
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