The other day while talking with the team, we were discussing the continued low inventory levels and got focused on foreclosures. With lots of laughs, remembrance of heart ache and pain, and high inventory levels, its amazing how drastic the real estate climate, access to inventory, and negotiating leverage can swing.
In a follow up to the 2017 Foreclosure Guide, lets take a snapshot look at the first half of 2017.
Foreclosure Inventory by Month
In May 2017, there is less than one month of active foreclosures with a sharp decline starting in November 2016. Once what was a lucrative market for buyers and investors, is no longer.
New Foreclosure vs Sold Foreclosures
Foreclosures coming up for sale are being listed at a slower rate then they're selling - main reason why foreclosure inventory continues to shrink.
Foreclosure Price per Square Foot Ratio
Foreclosures have become more expensive since 2012 when viewing the price per square foot ratio. Back then, REO holders were just starting to improve the condition of their properties to improve financing options and a higher sales price. However, ever since the beginning of the year, the price per square of foreclosures has become highly volatile.
New Listings by Price Range
The most active REO price point is the $200,000 to $250,000 by a large margin. Lot of this has to do with condition as the current REO inventory is in pretty rough shape.
*Time frame is from May 2016 to Apr 2017