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The Real Estate Foreclosure Market is Tough on Home Resale’s

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Published: Wednesday, June 04, 2008

It's a tough market to be a normal seller. With the rising number of foreclosed properties in suburban areas such as: Temecula, Murrieta, Moreno Valley, Hemet, Riverside and Stockton California, outside of large metropolitan areas like San Diego, Los Angeles and San Francisco, middle-class families have needed to move and commute for work. Real Estate agents in Riverside County and the Stockton area have even warranted against selling your home because of the overabundance of competition with the banks wanting to rid their books of homes needing to be sold. Foreclosure prices are too cheap and those who need to sell their home are against the odds. Investors and those wanting to find a good deal have found many suburban areas to be a great place to start, houses a few years ago appraised to be worth $500,000 are now being sold for close to $200,000. Those buying foreclosed homes have noticed there isn't much of a difference from a foreclosure to a regular selling home besides the price. Looking at this from a buyer's perspective, what could be better?

It's a tough market to be a normal seller. With the rising number of foreclosed properties in suburban areas such as: Temecula, Murrieta, Moreno Valley, Hemet, Riverside and Stockton California, outside of large metropolitan areas like San Diego, Los Angeles and San Francisco, middle-class families have needed to move and commute for work. Real Estate agents in Riverside County and the Stockton area have even warranted against selling your home because of the overabundance of competition with the banks wanting to rid their books of homes needing to be sold. Foreclosure prices are too cheap and those who need to sell their home are against the odds. Investors and those wanting to find a good deal have found many suburban areas to be a great place to start, houses a few years ago appraised to be worth $500,000 are now being sold for close to $200,000. Those buying foreclosed homes have noticed there isn't much of a difference from a foreclosure to a regular selling home besides the price. Looking at this from a buyer's perspective, what could be better?

For those still attempting to sell their homes Lenders will be keeping with the swing of selling foreclosures at cheap prices to continue to attract investors and buyers to an area of a high foreclosure market. Meaning they want to bring more people in to buy where so many homes have already gone into foreclosure to bring the market back up.

While home sales are down, the renting market is beginning to rise. Many have cherry picked the right homes to profit from a rental business. Someone could buy a home for $80,000 and rent it for about $1,000 which would be making a $400 profit on renting the home.

Foreclosures are continuing to be the larger part of the inventory in the Real Estate market which is allowing investors and first time home buyers to pick up homes for rock bottom prices.

Other Recent Articles

Home Buyer Tax Credit Extended Until April, 2010

Category: Recent Articles

Published: Thursday, December 10, 2009

The federal tax credit has been extended to April, 2010, including an expanded benefit to existing home owners who sell their homes and then repurchase a new primary residence valued at $800,000 or less. This could be the perfect opportunity for buyers who wanted to cash in on home auction bargains but were fearful of lower resales on their existing homes.

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The Southern California foreclosures market may be shifting, with fewer homes entering foreclosure than in previous quarters. However there are still 57,000 existing foreclosures statewide that need to be sold, and lenders are looking at foreclosed home auctions as a major tool to sell large numbers of foreclosures in a short amount of time.

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Southern California foreclosures still account for the bulk of area homes sales and lenders are finding real estate auctions the fastest and most efficient method of clearing their books of REO properties. Buying a home at auction requires a little prep work, however and the experts at homeauctionexpo.com share their insight on how to find the best auction properties.

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About this Page: The current real estate foreclosure market conditions are making for a terrible resale market. Though there has never been a better time for buying an investment property Realtors are encouraging home owners to hold on to their homes because of the significant decline in equity value.