More People Show Interest in Buying Houses at Foreclosure Auctions

More people are said to be showing interest in buying houses at foreclosure auctions and at other regular home-buying channels in Chicago, Illinois. Although sales and home prices continued their decline in February of this year, realtors reported that optimism is high among sellers as buyers showed increased interest in making a purchase.

Although prices are still in a slump, with most buyers able to acquire properties at prices that are almost like having free foreclosure homes in Chicago, realtors stated that there is a possibility that the spring season will bring the first sustainable recovery in the region's housing market. Signs of improvement are there, realtors asserted, with pending sales in February reaching their highest levels since April of last year.

Also, realtors are reporting multiple offers for foreclosures for sale in Illinois and other residential properties, with open houses also reporting increased traffic. Analysts have claimed that although this interest did not manifest in actual sales during the first two months, the coming spring buying season will likely reflect the optimism. According to them, buyers are moving out of the sidelines and entering the market, prompted by several developments that favor purchasing now than later.

Analysts asserted that buying houses at foreclosure auctions will soon pick up, mainly because buyers who have waited have mostly noticed that although interest rates are still low, there are signs that they will be rising soon. Also, rental rates are starting to rise, which could convince a huge percentage of renters to become homeowners instead of tenants. News that down payments will increase further in the coming months is also propelling a lot of buyers to look at what is available now.

In addition, homes are currently at their lowest price levels, with most properties found at free foreclosed homes for sale listings having asking rates never before seen in the market. These prices though, might increase at any given time since the economy and the job market are showing signs of improvement. Those who have delayed purchases last year might get tempted to buy now before prices rise, analysts further said.
Sales of homes in Chicago went down by 8.8% in February of this year compared with one year ago and also posted a drop of 2% month-over-month. However, analysts believe that the number of people buying houses at foreclosure auctions will rise in the coming months as homebuyers try to take advantage of bargain prices and low interest rates before they disappear.

Pre Foreclosure Properties Held Back Home Construction

The presence of low-priced distressed houses and pre foreclosure properties continue to hinder the growth of the home building sector in Indianapolis, Indiana, analysts have reported. Permits for home construction projects declined in the metro area in February 2011 compared with year-ago levels. According to housing industry analysts, the same thing is happening at the national level.

Local realtors reported that bargain-priced Indianapolis foreclosures for sale are taking a huge chunk out of new houses' market share. Moreover, demand for single family dwellings has been week in the past few months, causing home building activities to stutter. In February 2011, permits for house construction declined by 43% compared with February 2010. The total number of permits issued for the nine counties of the Indianapolis metro region was 201, according to data presented by the Builders Association of Greater Indianapolis.

The impact of Indiana foreclosures was felt in almost all markets of the state, analysts have revealed, with house construction activities remaining flat or declining in all counties of the region in February, except in Hancock. The county only had 11 home building permits issued in February, but the total represented an increase since only four were issued in the area in February of last year. In Marion County, a total of 39 permits were issued in February of this year; down by 55% from the same month of 2010.

In Hamilton County, home builders are relatively active during the month despite tough competition from distressed homes and pre foreclosure properties. The county had 72 permits filed during February, and although this total is higher than most local markets, it still represented a decrease of 52% from year-ago levels. Combining January and February figures will give Hamilton a decrease of 38% compared with the same two-month period of 2010.

According to housing industry analysts, the continuous rise in the number of foreclosures for sale, which had depressed housing prices, is largely responsible for the slowdown in home building activities not just in Indianapolis, but in the rest of the U.S. They also stated that tight lending procedures have made it more difficult for home builders to find buyers, while those who can afford to buy a new house are mostly waiting to see if prices will decline further.

Market observers are expecting further downturns in home building activities in various U.S. markets. They asserted that, as long as distressed houses and pre foreclosure properties are in high supply, new houses will not be able to gain traction, particularly with most homebuyers still not fully confident on where the economy is going.

Bankruptcy Homes and Foreclosures Account for Big Percentage of Sales

Low-priced foreclosures and bankruptcy homes account for a large part of housing sales in the Twin Cities of Minnesota. This has resulted in price declines for February 2011 compared with the year before. Actual sales and pending purchases are also down from the same 2010 month.
Data provided by the Minneapolis Area Association of Realtors showed that pending home sales went down by 13% in February 2011 compared with year-ago levels to reach a total of 3,082. Meanwhile, closed sales of St. Paul and Minneapolis foreclosures for sale and non-foreclosed properties declined by 1.7% compared with February 2010. However, when compared with February 2009, sales were actually higher by 2.5% and also up from February 2008 by 5.6%. Median selling prices, on the other hand, dipped in February compared with one year ago.
The median rate for Minnesota foreclosures and non-foreclosed dwellings sold in the Twin Cities during the month was $143,000, down by 10% from February 2010. The percentage of total housing sales accounted for by foreclosed properties jumped by almost 40% in February of this year compared with year-ago levels. Housing market analysts stated that this is the reason for the drop in median prices. Selling prices dropped in almost all housing segments during the month when compared with 2010 levels.
Prices of bankruptcy homes and foreclosed houses dropped by 12.5% in February of this year compared with February 2010 to around $105,000. Meanwhile, median selling price for regular or non-foreclosed residential properties was at $194,605 in February of this year, down by 4% from one year ago. The price of houses sold through short sales went down by 3.2% from the previous year to reach a median of $140,290.
According to housing industry analysts, the continuous decline in home prices is mainly due to the oversupply of properties in free home foreclosure listings. Foreclosed properties are sold at very low prices, with most regular home sellers also forced to lower their asking rates to be able to compete with cheap distressed dwellings. Prices of residences are expected to continue to drop for the rest of 2011 as more foreclosures enter the market.
Most housing analysts predict further increases in foreclosed and bankruptcy homes this year, which will mean further depression in prices. They also believe that 2011 will be much the same as 2010 for the housing industry, with home sellers finding it difficult to unload their properties and most of them forced to lower asking prices just to close purchase transactions.

Real estate Investments and Housing Sales Decline in King County

The number of real estate investments and houses sold in King County, Washington declined in February compared with the previous month and the year before. Prices of homes also took a tumble, with both median and average selling rates recording lower figures. Despite the poor showing for the month, realtors are optimistic that sales and prices will pick up in spring.
A total of 1,244 foreclosed homes for sale in Seattle and non-foreclosed dwellings in the rest of the county were purchased in February 2011, down from the January 2011 total of 1,259. The figure was also lower than one year ago when 1,255 dwellings were sold in February 2010. In terms of average selling price, King County's was pegged at $401,339 in February, down from the $411,353 recorded in the previous month.
The figure also posted a drop when compared with the February 2010 average selling price of 429,288. According to realtors, part of the reason for the decline in prices is the oversupply of foreclosed homes in Washington which are mostly offered at bargain rates. Meanwhile, median selling rate last month was at $320,000 for the whole county, down from the January 2011 median price of $333,500.
Figures were also down from year-ago levels as February 2010 median rate was pegged at $343,500. Despite the decline in prices, not a lot of real estate investments were recorded in the county and homebuyers were also relatively few. Much of the same can be seen in other counties of the Western Washington region. For the region's 20 biggest counties, including King County, February 2011 sales declined to 3,080 from the January 2011 total of 3,207.
Although there are no such things as free foreclosure homes, some market observers have stated that the current prices of dwellings in the area and in most U.S. markets seemed as if the properties are simply being given away. The average price for all counties in February was $304,501, a decline from the previous month's $305,428. Median rate also went down from January's $243,500 to $240,000 in February.
Despite the poor price and sales figures for the month of February, realtors believe that the coming months will be better. They predict that real estate investments and housing sales will improve, particularly during the spring; traditionally the strongest season for the U.S. housing market. In terms of prices, analysts stated that they are likely to remain low, but will definitely improve from the first two months of the year.

Foreclosure Process for a Home Showing a Different Face

The foreclosure process for a home usually starts when the homeowner is late in paying his or her monthly mortgage loan. In the past, majority of cases involved homeowners who had took out subprime mortgages or bad loans. Recently, however, more and more traditional borrowers are losing their homes to foreclosure in Tennessee.
Although Nashville foreclosures for sale and statewide distressed property figures are still dominated by properties with subprime loans, an increasing number of traditional mortgages are joining the foreclosure fray, with a big amount of properties coming from higher-end neighborhoods and more expensive home communities.
Data showed that an increasing percentage of Tennessee foreclosure homes for sale came from suburban areas whose owners purchased the properties at a price ranging from $200,000 to $400,000 during the pre-crisis area. They are also borrowers who took out traditional loans and most of them have multiple sources of income, having more than one person in the household employed at a high paying job.
Analysts stated that the problem lies in the job element. A big number of properties entering foreclosure process for a home are reportedly owned by people who can afford a high-end dwelling a few years ago, but have lost their jobs in the past year. This resulted in their inability to pay for their mortgages, regardless of the fact that they have traditional loans, which are considered relatively safe.
The latest properties entering the distressed market are not like most houses that are priced so low that it is like offering free foreclosed homes for sale. Majority of the latest additions to the state's foreclosure figures are reportedly priced at least $200,000, with most of them coming from previously insulated suburban areas. Census reports showed that the foreclosure problem is creeping towards areas like Cordova and other high-end neighborhoods in Shelby County.
The same development is happening nationwide, analysts have reported. Last year, an estimated 87% of delinquent borrowers or properties entering the foreclosure process for a home for the first time were accounted for by prime rate loans. The figure is expected to rise again this year unless big improvements will happen in the nation's job market in the coming months.