Bank Foreclosures Information

Bank Owned Homes for Sale Still Holding Housing Market Back in Utah

By Alana

The huge amount of foreclosed properties and bank owned homes for sale in the Utah market will continue to hinder the housing industry from recovering fast, analysts have asserted. However, they believe that demand for residential properties will soon rise as creation of new households outpaces residential supplies.

Analysts stated that the supply of bank owned homes Salt Lake City and foreclosures in the markets of North Utah County should decline first before the whole region can achieve a sustained sector recovery. However, a number of housing analysts believe that pent up demand for residential properties will eventually lift the slumping sector within the next three years.

According to them, the supply of available Utah bank owned properties for sale and new houses is starting to shrink in various areas, particularly in the north Utah County region, and most of these areas will have more need of new houses in the coming few years. Realtors estimated that new households in the north county region number around 40,000, while the number of new houses being built is around 30,000 units. With household formation seemingly outpacing home building activities, analysts reported that builders are staring to make plans to construct more new dwellings.

Even with a lot of bank owned homes for sale and foreclosures to compete with, most home builders are reportedly anticipating a surge in demand within three years. In the market of American Fork, home builders filed for 52 single family residential permits last year. The total might be small, but analysts reported that the figure represents a jump of 136% when compared with 2008 when only 22 construction permits for single family dwellings were issued.

In Lehi, the number of cheap houses for sale is expected to diminish soon as analysts expect prices to pick up as new home construction increases. In 2008, only 193 housing permits were issued in the city, but the number bounced back last year to reach a total of 281. Although this total is still way below pre-crisis period levels, most analysts are optimistic that home building activities will continue to pick up in Lehi and in the rest of the north Utah County market.

Supplies of foreclosed and bank owned homes for sale are predicted to continue to rise in most areas of Utah, but housing industry analysts believe that the rate by which new households is being created will eventually bring a balance to the region's residential market. They expect home building activities to increase in the next three years.

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Fewer Bank Foreclosed Homes for Sale Gave Hope to Price Observers

By Alana

Although the supply of bank foreclosed homes for sale in Scottsdale, Arizona is still very high, local real property agents are optimistic that housing prices will soon flatten out. They revealed that the housing sector remains a buyer's market, but the shrinking inventory of houses and the diminishing number of foreclosures are giving them some hope that prices will soon reach bottom.

With the number of Scottsdale foreclosures for sale reaching record highs in the past three years or so, local analysts stated that they expected residential prices to tumble. However, the pace of decline is showing signs of slowing, with last year's median price pegged at $375,000 in the metro area. This figure represents a dip of 6% when compared with 2009 levels.

The decline however, followed two consecutive periods of double-digit drops in housing prices, with local areas in the metro with the highest number of Arizona foreclosures posting the biggest drops. Latest figures for the region showed that prices in the area of Pinnacle Peak have declined by only 2% in recent months, while Rio Verde's median selling rate inched up by 1%. Such local trends make a lot of analysts more optimistic when it comes to the direction that Scottsdale's housing market is taking.

According to housing experts, the huge amount of bank foreclosed homes for sale absorbed by the market is the main reason for the continuous slump in residential prices. However, the decrease in foreclosure numbers in certain local markets recently is expected to be reflected in home prices in the coming months. As an example, analysts cited a neighborhood in DC Ranch wherein 23 foreclosures were posted last year, with latest figures showing that the total has declined to one.

The bargain prices and low interest rates are benefitting a lot of buyers, though. Analysts reported that investors, particularly those who have huge amounts of cash, have been picking foreclosed houses and bank owned land off the market at heavily-discounted prices. Tough competition from cheap real estate has also encouraged a lot of sellers to improve the looks of their properties which helps get them sold that much quicker.

Meanwhile, luxury bank foreclosed homes for sale remain low in Scottsdale as most lenders are reluctant to seize or foreclose on high-end dwellings. According to analysts, lenders are aware that more expensive houses will not stand much chance of getting sold at the current condition of the industry where cheaper homes are available by the thousands.

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Bank Owned Home and Condominium Sales Up in Florida

By Alana

Sales of existing residences, including bank owned home properties and condominiums, went up in Florida during the March 2011 period compared with one year ago. According to realtors, the March increase marks the fourth month in a row that sales of existing condos and houses in the region have gone up year-over-year.

The rise in sales of Boynton Beach bank owned properties and existing condos in other key areas of the state was largely attributed to the high number of investors taking advantage of bargain-priced real estate currently available in the Florida market. For March 2011, 18,522 existing homes were sold in the whole region, representing a 12% rise from March 2010 when 16,540 houses were sold, according to a report issued by Florida Realtors.

Aside from Florida bank owned homes, condominiums also enjoyed a strong March in terms of sales, with figures jumping by 24% compared with March 2010. A total of 17 metropolitan statistical regions in the state recorded increases in existing condo and housing sales during the month. Realtors reported that elevated buying activities during the month were largely due to the availability of heavily-discounted properties and the fact that interest rates have remained at historic lows despite inching up a bit in the past few weeks.

However, median selling prices of a bank owned home and other types of existing dwellings continue to tumble in the region. In March 2011, the median selling rate for existing houses was at $126,300, down by 7% from the $136,000 median price recorded in March 2010. According to the National Association of Realtors, median selling rates have plummeted in most areas of the U.S. during the month, mainly because of the huge amount of discounted foreclosures and short sales that are being sold in the market.

Prices of existing condominiums offered at foreclosure auctions and at other sales markets also declined, with the March 2011 price pegged at $84,300, down by 11% from the March 2010 median rate of $94,800. Total units sold were 9,703 for the month, declining by 24% from the 7,830 condo units that were sold one year ago. The drop in prices was mirrored at the national level, realtors also reported.

The price of a bank owned home and existing condos in the whole country is expected to continue to decline for most of 2011. However, realtors are optimistic that sales will continue to rise, particularly in the coming months as the national economy continues to stabilize and the job market improves.

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Impact of Bank Foreclosure Listings Diminishing in Some Georgia Areas

By Alana

Although bank foreclosure listings and distressed property numbers are still high in most parts of Georgia, realtors in the southern part of the state have revealed that the region's housing industry is starting to turn around. They stated that housing sales are picking up, with buyers getting lured by low interest rates and affordable homes.

With Atlanta foreclosures for sale and distressed properties in various areas of the state offered at almost half their original prices, realtors claimed that now would be the best time to buy a home. In the region of Valdosta, realtors reported that the inventory of for-sale homes currently stands at 1,200 units. Around 175 of these residences are already under contract, with majority of buyers taking advantage of the low rates of interest.

Aside from record low interest rates, realtors revealed that the low prices of foreclosed homes in GA are also a great attraction to those who wish to purchase a home. Valdosta realtors reported that increased interest in home buying is pushing the region's housing market forward, with the current inventory averaging a market-stay of only 155 days, a time length that is considered healthy for a supply of over 1,000 units.

Although realtors are seeing more buyer interest in bank foreclosure listings and other existing dwellings, they revealed that the new home market is still in a slump. According to them, sellers of newly built houses are finding it hard to compete with cheap distressed properties. The impact of the foreclosure crisis, realtors further stated, was the worst for the home construction market than for any other sector. During 2006, the annual home building permit for the whole state was pegged at a little over 86,000.

As of last year however, this huge number has dwindled to just nearly 13,000. Real estate agents reported that new home builders are being forced to close operations as most of them are unable to compete with the massive supply of heavily-discounted foreclosed houses and bank owned rentals currently available in the market. The decline in homebuilding activities also resulted in decline in construction jobs as numerous construction firms are forced to shut down.

Despite the problems with the new home market, realtors believe that higher home buying activities, even among houses in bank foreclosure listings, will help the region recover from the housing slump. They added that the home construction market will just have to ride it out and wait for further improvements in the housing industry.

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Prices of Regular Dwellings and Bank Owned Homes Up in Boston

By Alana

Prices of regular residential properties and bank owned homes improved in Boston, Massachusetts in February of this year compared with one year ago. A report from CoreLogic showed that housing prices in the Boston-Quincy metropolitan region jumped by over 4%, marking the second month in a row that prices have increased in the metro area.

Boston bank owned homes and regular houses recorded a 4.6% rise in prices in February 2011 compared with the same 2010 month. According to housing industry analysts, the rise was significant given that nationwide prices and rates in majority of metro areas have declined over the same period. The February increase also followed a January when prices also recorded a surge.

Despite a challenging home market dominated by Massachusetts bank owned property and foreclosures, prices in the Greater Boston region increased in the first two months of the current year. In January, housing prices jumped by 5.54% compared with January of last year. When distressed property sales and short sale transactions are excluded, prices in the region increased by a lower margin in February at 3.11%. For January, the price increase was 2.95% minus distressed property transactions. Overall, U.S. housing prices are reportedly doing much better when distressed home sales are taken out of the equation.

When bank owned homes, foreclosures and short sales are excluded, the decrease in nationwide prices during February was a mere 0.1%. However, when prices of all types of residences are considered, the year-over-year decrease was 6.7%. Analysts have reported that the nationwide drop in residential prices during the month was mainly due to the high percentage of sales accounted for by foreclosures and short sales.

With bank and government foreclosed houses being sold at almost half their original prices, the overall price is depressed further, analysts further added. They claimed that the impact of foreclosed properties on housing prices is highly evident among states hit hard by the housing industry crisis as most of them also recorded the biggest price declines during the month. The biggest drop was recorded in Idaho for the month, followed by foreclosure hotbeds Arizona, Florida and Michigan.

In Boston, housing analysts are confident that despite the presence of foreclosed and bank owned homes, prices will continue to stabilize in the coming months. Any decline, according to them, will be minimal and will not reach the same level as seen in areas hit hardest by the industry crisis.

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Bank Foreclosures Declined in Southeastern Massachusetts

By Alana

Latest housing data showed that bank foreclosures in the region of Southeastern Massachusetts have declined in February 2011. However, housing market experts stated that declaring a recovery for the residential industry now would be foolhardy since it is not yet clear whether the drop was due to the crisis abating of whether lenders have slowed processing due to several controversies that emerged last year.

Most of them agree however, that Boston foreclosed homes and distressed properties all over the state will remain a major concern for most of 2011. The good news is that, in areas like the southeast where foreclosure activities have eased a bit, a big number of homeowners will be experiencing some respite from the foreclosure crisis that has hammered the region in the past four years or so.

Bank foreclosed homes in Massachusetts dipped in southeastern areas like Bristol County and Plymouth County during February of this year. In Bristol, foreclosure notices dropped by almost 70% in February 2011 compared with February 2010. Meanwhile, completed foreclosures also declined in Bristol by nearly 50% over the same period. In Plymouth, foreclosure petitions plummeted by 57% year-over-year in February, while completed foreclosures dipped by 14% over the same period. Barnstable County also posted massive declines, with petitions dropping by 59% and completed foreclosure actions plummeting by 48%.

For the whole state of Massachusetts, petitions, or the initial step in the process of foreclosure, declined by a massive 67% from last year, while bank foreclosures and other completed foreclosure-related actions declined by 44% over the same period. Despite huge drops in foreclosure activities in most areas of the state, analysts reported that the foreclosure crisis is still far from over.

They asserted that foreclosures and real estate owned properties for sale are likely to increase again in the coming months. Analysts cited high unemployment rates and continuous increase in delinquent mortgages as primary reasons for the expected increase in foreclosure numbers in the coming months. In addition, a big number of residents are currently holding underwater mortgages, which means that they hardly have any remaining equity in their homes, something that could eventually lead to foreclosure, particularly if they are also experiencing reduced income.

Economists are predicting that bank foreclosures will continue to depress the housing industry of Massachusetts in 2011 unless the job market stabilizes and prices of real estate start to improve. They did express some optimism however, reporting that an increased number of lenders are now more willing to approve short sales.

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Banks Slow to Approve Short Sales As Bank Owned Homes Continue to Rise

By Alana

Despite a continuous rise in the number of foreclosures and bank owned homes, lenders are allegedly slow to approve short sales. These types of transactions are being seen by most housing market analysts as a better alternative to foreclosure and involve the sale of homes for a price lower than what the borrower owed to banks.

The California Association of Realtors has recently conducted a survey participated by more than 2,000 respondents with regards to short sales. According to the survey, banks usually take longer than two months to respond to an offer for a short sale. Among approved offers, less than 60% eventually end up getting sold through short sales, with the remaining transactions breaking down and the properties involved ending up as Riverside bank owned homes or foreclosed properties in some other areas of California.

Some housing experts stated that promoting short sales might help lower the number of foreclosed homes and bank owned houses in California and in the rest of the U.S., but the survey results showed that getting all parties on board is not that easy. They also stated that the length of time it takes for a bank to reply to a short sale offer based on the survey results is way too long when compared with the time specified under government guidelines.

Some analysts have asserted that increasing short sale transactions will help prevent further increases in the number of foreclosures and bank owned homes in California and will aid the state's economy in its recovery. However, some housing experts also stated that the process of short sale seemed to be in need of some changes.

Although the survey was conducted only among agents in California, some members of the National Association of Realtors have asserted that similar observations have been made in other states of the U.S. They revealed that in hardest hit areas like Arizona and Nevada, banks are deemed to be ill-equipped when it comes to making decisions about short sales. Analysts stated that since real estate investments and home sales have also become a big part of most banks' operations following the housing market crisis, then they should also exert more effort getting familiar with short sales.

With foreclosures and bank owned homes continuing to rise in California, analysts expect values of properties to continue to decline and underwater mortgage numbers to rise. They argued that short sales should be promoted to help alleviate some of the foreclosure problems of the state.

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Bank Foreclosure for Sale Properties Make Builders Wary

By Alana

The high number of bank foreclosure for sale and distressed properties had made home builders in Fort Wayne, Indiana, reluctant to start any construction project once these structures were left standing for a long period of time without anyone showing an interest. However, analysts reported that confidence is growing among builders as the date for the Parade of Homes gets nearer.

The presence of foreclosures in Fort Wayne has made a lot of home builders wary of building new homes as potential buyers get fewer. The annual showcase of build-to-spec homes caught a snag last year, when among the reported 80 builders approached to participate; none showed a willingness to build unless there are buyers already lined up. However, the event will return this year and will be held in September in a subdivision at the northeastern part of the city.

This, analysts stated, showed that builders are gaining confidence and that the market is starting to improve despite the continuous flood of foreclosed homes in Indiana. Although local analysts are confident that the housing industry is starting to rebound, they do admit that the same cannot be said for the national housing market. February data showed that nationwide home building activities declined by 22.5% during the month compared with January 2011.

New houses built in February totaled 479,000 in the whole U.S., recording the second lowest total in more than 50 years. With this in mind, analysts reported that builders in Fort Wayne are being more cautious, with most of them building houses that are moderately priced and have better chances of competing with low-priced bank foreclosure for sale properties.

Majority of homes that will be built at the venue of the Parade will be priced between $250,000 and $300,000, local reports have revealed. Although this price range is still higher than the prices of homes commonly found in list of REO properties, they are much cheaper than the average price of $300,000-$500,000 planned last year. Industry analysts stated that last year's price range would have been unrealistic now, particularly with the market currently dominated by investors seeking bargain homes.

Meanwhile, although bank foreclosure for sale and distressed houses are still expected to account for a large percentage of home sales this year, most home builders believe that sales of new homes will rise in 2011. They stated that the improving economy and the stabilizing job market will help convince more buyers to go for new houses instead of purchasing distressed dwellings.

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Realtors Favor Short Sales to Lower Bank REO Properties for Sale Totals

By Alana

The number of foreclosed homes and bank REO properties for sale in California is one of the highest in the entire U.S. Realtors and market analysts have stated that short sales can help control the continuous increase in the number of foreclosed homes in the state. However, several factors are preventing transactions from getting completed.

As the number of Los Angeles bank owned homes and foreclosed properties in the rest of the state continues to rise, realtors and housing advocacy groups are exerting more efforts to find ways to stop the number from further increasing. Recently, the California Association of Realtors launched an all-out promotional campaign aimed at bringing short sales to the forefront of everyone's attention and, at the same time, calling for reforms to streamline the short sale procedure.

Analysts stated that the short sale process is a confusing and time-consuming one, resulting in more buyers favoring the purchase of California bank owned homes over buying a short sale property. The issue with the complicated process is also not helped by majority of banks allegedly taking a very long time to respond to short sale requests that most interested buyers lose patience and drop out of agreements. These factors are just some of the issues that the association's campaign was trying to address.

The group has taken out advertising pages at publications to call attention to the need for reforms. According to local reports, the campaign was particularly aimed at government officials, federal and state agencies and lender banks. The reform should allow short sales to compete with bank REO properties for sale by making the process simpler and easier to complete.

Meanwhile, some bank officials have stated that there is nothing much that the banking industry can do. They argued that short sales are just inherently complex, mainly because of multiple parties involved in the transaction. In comparison, when buying bank and Fannie Mae foreclosures, it is only the buyer and the seller that are involved. They further added that, in a short sale, several investors are often part of the transaction, particularly in cases when there is more than one mortgage holder.

The goal to establish a uniform process or a procedure as simple as the one used in purchasing bank REO properties for sale is practically impossible, some lenders have stated. They argued that a standardized process cannot be enacted as short sales often differ from one situation to another.

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Cold Weather Kept Buyers of Bank Foreclosure Properties Indoors

By Alana

Sales of bank foreclosure properties and other residential real estate have stalled in Missouri as the cold weather forced potential buyers to stay indoors. According to a report from the Federal Reserve, consumer spending has stalled in Missouri and in other U.S. areas as winter storms hammer various regions.

Local realtors have reported that a big number of Saint Louis foreclosures, as well as houses in Kansas and in the rest of the state have remained unsold as February ends. They reported that the residential property market has come to an almost standstill. As the weather gets worse, realtors revealed that housing prices further declined and sales continued to tank for both new houses and existing dwellings. However, most of them are optimistic that home buying activities will pick up come spring.

With Missouri foreclosures piling up as buyers stay away from the market, the home building sector is also affected, realtors have added. They reported that housing starts have remained flat in Kansas City and in most Missouri markets, although house builders are reporting higher traffic, with more people inquiring about properties for sale. While the residential property market is barely moving, commercial real estate is reportedly showing some signs of life.

As bank foreclosure properties remain unnoticed, commercial properties are reportedly catching the eye of more investors. The segment has posted increasing sales since January and leasing activities are also said to be picking up. Vacancy rates among commercial structures in the state have gone down, although most commercial property owners are unable to initiate expansions and take advantage of the high activities mainly because of continuous increases in the prices of raw materials.

Analysts revealed that it is not only the market for real estate owned homes and newly built houses that have been affected by the cold weather, but also the retail sector. In Missouri and in neighboring states like Kansas, Colorado and Wyoming, retail sales have gone down. This forced a lot of retailers to cut down store hours and temporary layoff some of their workers. Sales of automobiles also declined as buyers stay indoors. Despite a slowdown in retail sales and house buying activities, both industries are confident that they will surge once the weather gets better.

Real estate experts are predicting huge improvements in buying activities involving bank foreclosure properties and newly-built houses in the coming spring as pent up demand makes up for the slow first two months. They also predict higher sales for the retail sector in a couple of months or so.

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Information, Articles and News About Bank Foreclosures

Bank Owned Homes for Sale Still Holding Housing Market Back in Utah

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Bank Foreclosure for Sale Properties Make Builders Wary

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