According to the latest data gathered by the National Association of Realtors, median prices of homes in the country have declined by 7.6 percent in the second quarter. There were at least 75 percent of cities in the United States, which were affected.
Surprisingly, home sales in cities hardest hit by the mortgage mess showed an increase in activity. This only indicates that buyers are starting to realize the great return potential of foreclosed properties and are taking advantage of these investment opportunities.
A year earlier, California and Nevada showed no signs of sales gains. But for the second quarter of this year, these two states are recording sales activities. For instance, Nevada home sales increased by 18 percent and California’s rose by 3.7 percent. Median home prices in Las Vegas neighborhoods declined by almost 24 percent; while in Los Angeles, Sacramento and Riverside, prices plunged by over 30 percent.
Across the nation, home sales fell by 16.3 percent compared to the same period last year.
Buyers are definitely on the move and they are finally responding to the steep decline in home prices. Now, they could finally check out foreclosed homes in wealthy neighborhoods and have no worries about the affordability of such homes.
It is not surprising that buyers are on the lookout for such deals considering the weak economy and high inflation rate. These foreclosed homes are sold at a fraction of their current market prices, allowing buyers to enjoy much savings even with the repair costs.
Bank foreclosures or repossessed homes reverted to the banks are eagerly sold at great discounts so that the banks will be able to avoid incurring huge holding expenses. If you are interested in these foreclosure homes, it will be wise to check out local foreclosure listings or subscribe to the ones that can be accessed online.
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