La Jolla, CA (PRWEB) August 31, 2012
REMI issued some observations about the rising market for distressed homes and concurrent reduction in inventory today, and their opinion is that this will help home sellers due to the fact that these distressed homes are raising prices on the overall market and the fact that there are fewer available means that buyers will be looking toward those properties or wondering how to get real estate leads.
Bloomberg Businessweek reports on the rise in demand for distressed properties, which is driving up housing prices. According to research done by RealtyTrac Inc, there has been a 7 percent rise in prices for foreclosed and bank-owned homes in the second quarter of 2012. This is the largest annual increase since 2006. Much of the rise in prices is due to increased demand from investors, who not only want to flip houses and sell them for higher prices, but also want to invest in rental properties, such as beachfront home rentals. The demand has been so high, in fact, that in many markets, there is nothing left of distressed properties. This is partially due to the fact that lenders have not been as quick to seize properties and put them on the market due to acts of legislation from the U.S. government. The Office of Mortgage Settlement Oversight provided information indicating that there are more short sales available as a result of this legislation. New guidelines to make foreclosures and bank seizures less likely were recently instituted by the Federal Housing Finance Agency and go into effect in November, 2012.
RealtyTrac Inc is a company designed to provide information about properties and specializes in foreclosures and other distressed properties. They produce a report on U.S. foreclosures on a monthly basis. The RealtyTrac website is now considered to be one of the largest and most important real estate websites available. RealtyTrac is headquartered in Irvine, California.
The Office of Mortgage Settlement Oversight was created in February 2012 after a settlement was reached between the attorneys general of nearly every state in the United States and the heads of five different major banks. This settlement created new standards of servicing and dealing with mortgages. It was also agreed that the banks would provide 25 billion dollars in relief for consumers who were underwater in order to help them avoid foreclosure.
The Federal Housing Finance Agency was created in 2008 after the financial crisis in order to regulate and oversee federal housing organizations and the conservatorship of Freddie Mac and Fannie Mae, the two mortgage giants that were taken over by the U.S. government as part of their bailout deal. The Federal Housing Finance Agency has recently been involved in several lawsuits against different financial institutions for allegedly misrepresenting themselves to Fannie Mae and Freddie Mac.
Real Estate Marketing Insider today commented on the recent rise in housing prices, especially for distressed properties, which are being bought by investors at an extremely high rate.
About Real Estate Marketing Insider:
Real Estate Marketing Insider is a publication based out of La Jolla, California with the main objective of providing a wealth of strategies, tips and analysis for real estate professionals.