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Repossessed Home Listing Gaining Ground Among Buyers

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By : John Cutts    99 or more times read
Housing data for November 2010 showed an increase in the number of signed purchase contracts, marking the fourth month in a five-month period that housing sales have risen in the U.S. Economists report that majority of the contracts involved foreclosed dwellings and properties in repossessed home listing.

Economists expect the first two to three months of 2011 to record increased residential property sales as buyers take advantage of the low prices of properties offered at foreclosure home auctions. They also predict that sales will improve modestly in 2011 as more jobs are created and prices of housing units become more stable. However, the sudden rise in rates of 30-year mortgages might pull back the housing industry from an expected recovery.

The National Association of Realtors has supported economists' expectations, revealing that sales contracts for existing dwellings, including foreclosed homes on sale, rose by 3.5% in November compared with the previous month. Signed contracts related to these properties surged in the Northeast and West, but declined in the Midwest as well as in the South.

Completed housing unit sales, including those purchased from repossessed home listing, are projected to reach a total of 4.8 million in 2010. Although this is below the 6 million initially predicted by analysts for the year, it is still higher than 13 years earlier when housing sales accumulated a total of 4.4 million. Around one third of total pending sales are expected to be comprised of foreclosed properties and short sale agreements.

Because of the huge percentage of home foreclosures by state accounting for nationwide home sales, prices are expected to dive even lower for 2011 as most of the properties sold as foreclosures and through short sales are offered at almost half their original prices. In the first half of 2011, prices of houses are forecasted to decline further between five and 10%. This prediction is consistent with October 2010 housing data when home prices in 20 of the largest metro areas of the country experienced declines.

The biggest increase in the number of signed contracts for sales of new homes and existing properties, including those in repossessed home listing, was recorded in the West at 18.2% in October. The biggest drop for the same month was 4.2% at the Midwest region.

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