(PRWEB) May 03, 2012
The government’s new bulk auction program could be one of the keys that unlocks the path to housing recovery, according to affordable-rentals listing site GoSection8.com. The process that investors currently navigate to buy foreclosed properties can be quite lengthy and frustrating. Investors in many markets often put in dozens of offers just to buy a single property. The bulk sale option may drive many investors into the process, creating quite a competitive market.
HousingWire.com has reported that as many as 400 investor groups have filed to become bulk-REO purchasers from Fannie Mae and Freddie Mac.
“Demand for foreclosures remains so competitive, the bulk auction process could return the GSE’s market values,” says Richard Cupelli, president of GoSection8. “Although pricing homes at “bottom-basement” pricing should be a concern for any market, the backlog of inventory, and the willingness of institutional investors to hedge on soon-to-be higher pricing, is driving serious interest to these homes.”
That interest is likely to result in market pricing, according to Cupelli. “We match landlords with tenants with affordable housing. Demand for rental listings and rental inquiries have spiked this year as the nationwide supply of affordable rental units has dwindled,” he says.
“We’re seeing a significant increase in traffic,” Cupelli says. “Marketing times in the first quarter have decreased drastically over the same period last year.”
GoSection8 has provided rental-valuation services for Freddie Mac’s tenant-occupied homes for the past two years. “Inquiries from institutional investors about this service have risen sharply in 2012,” Cupelli says.