and with this flooded market we're seeing, prices are going lower than ever.
Los Angeles, California (PRWEB) March 4, 2008
While 2007 saw some of the highest rates of foreclosure many states have recorded in decades, new statistics released by BankForeclosuresSale.com show that during the first month of 2008 foreclosures rose 8% nationwide, setting the stage for what many economists and housing market analysts are predicting could be the biggest year yet for new foreclosures. The figures for January of 2008 were also almost 60% higher than they were during January 2007, showing both the sheer volume of properties coming on to the market, as well as the progressive nature of the phenomenon.
"What we're seeing is the first wave of a huge year for foreclosure properties," commented Doug Mandeville, a research analyst for BankForeclosuresSale.com. "The economy is slumping, property values are way down and there are more adjustable rate mortgages ready to reset this year. This all adds up to more foreclosures, to put it simply."
And as more and more foreclosure properties come on to the market, it also seems that more people are attending foreclosure auctions and other repossession sales.
"People are starting to realize that foreclosure homes offer better deals than the regular market," remarked Mandeville, "and with this flooded market we're seeing, prices are going lower than ever."
Statistics are also showing that areas where property values shot up during the housing boom of the earlier part of the decade are now also experiencing some of the highest rates of foreclosure. In fact, in many locations more homes are going into foreclosure than are being sold through traditional means, creating a huge market for foreclosure properties.
In California for example, roughly 250,000 properties entered some stage of the foreclosure process during 2007, which equaled roughly 1 in every 50 homes. This included a healthy portion of LA foreclosures and surging levels of Sacramento and Bakersfield home foreclosures. While not all of them end up being sold through foreclosure auction, plenty were sold through pre foreclosure sales. The rate of California bank foreclosures was especially high, with many properties coming under the control of lending banks before going to sale.
BankForeclosuresSale.com reports that buyers are getting great deals all over, and in states where the foreclosure rate is especially high such as Nevada, California, Florida, Colorado, Michigan or Texas, it's becoming common to see bank foreclosures sold for up to 50% below their actual value. Nevada had one of the most flooded markets, with roughly 1 in every 34 homes in some stage of foreclosure, followed closely by Michigan and Florida.
BankForeclosuresSale.com is a full-service research, listings and news source company for the California foreclosure homes market. Staffed by a team of veterans of the local California real estate market, BankForeclosuresSale.com is the leading online provider of information on California foreclosures and California foreclosure listings.