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Wednesday, January 16, 2013

Why Short Sales and Foreclosures Have Boosted the Market



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The real estate market is changing quickly.   As your real estate resource center, I’m committed to keeping you up to date on all of these changes—and what they mean to you.  Over the past few years, we’ve seen changes related to short sales and foreclosures.  Because of this, there’s a good opportunity in real estate that most people are not aware of—low inventory along with record-setting low interest rates.  Here’s what’s happening in southwest Florida. 

First, a short sale is a property that sells for less than what the owner owes on the loan, while foreclosure is when the bank takes ownership of the property.  We’re seeing changes in the short sale process and mostly for the better with the process tending to be much more compressed.  We’re also seeing changes in the number of foreclosures.  Comparing December 2012 to December 2011 the number of bank-owned properties decreased by 44%.   Along the same lines, bank-owned properties listed for sale decreased by 62% during the same time period.  As the number of foreclosures and short sales decrease, nicer, higher-priced homes have come on the market. 

This is great news for southwest Florida.  The reason?  It comes down to lower inventory levels pushing prices higher. You can get more for your home when there's less competition. Remember, it's all about supply and demand, and now's the time to get top dollar for your home.

Buyers should also keep in mind that the 30-year fixed-rate mortgage hovered at a record-low rate during 2012.  Better interest rates not only make your monthly payment lower but translate into more buying power.  These rates have also helped make home-buying affordable, but they won’t last forever.    

As always, you can reach me at 239.300.1427 or Kris@FindParadiseWithKris.com.  I’d be happy to assist you with buying or selling your home. 

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