No doubt about it: the housing market has had a rough decade. But things are finally settling down. While that may be good news for sellers, the news is not so good for buyers still looking to catch a deal on real estate foreclosures.
Florida broker Dean Ehrlich says, “People used to think the word ‘foreclosure’ means a deal, and it doesn’t anymore.” Many foreclosed homes are now selling right at market value, as opposed to just a few years ago, when buying real estate foreclosures could save you thousands of dollars off the market price of a home.
But as with every trend in any market, there’s a give and take. In the heart of the housing crisis, many owners were reluctant to put their homes on the market, for fear they couldn’t even command the full the price of their home, let alone make a profit. A more favorable sellers’ market means more houses for sale.
So while the prices may not be as much in the buyers’ favor anymore, the options will greatly increase as more houses enter the listings. More houses means more competition, and competition has a way of bringing the prices back down again. Such is the fluctuating and self-correcting nature of a free market.
Not that there aren’t deals still to be had in real estate. Real estate auctions offer buyers a chance to snag a property for less than market value. And while the general trend of foreclosures is on the rise and leveling out, a diligent and determined buyer may still be able to find great deals on real estate with patience and a little help from a savvy realtor.
Even though it’s not a buyers’ market anymore, the overall news is good: a more stable housing market means a more stable economy overall. Who says we can’t weather a storm? Find more on this here.