More Great News of Investors as Short Sales Continue to Soar- By: Jacquelyn Marks
Based on the report released by the US Foreclosure Sales Report that focused particularly on short sales, there is an impressive 31 percent growth on residential sales, which started on the second quarter of this year. Last year 2010, there was a reported average increase of 24 percent, which can only mean more good news especially for investors who are purchasing properties left and right and selling it for a profit after some strategic makeovers.
It is significant to note that despite the increase in the sales from last year, the sale of real estate properties that are in some stage of foreclosure along with REO properties have not increased or have remained on a plateau, which can only mean, third parties, particularly real estate investors have enjoyed that increase in sales.
According to the report, the average price of a foreclosed home property or the bank owned ones was at $ 164,217, which reflects a 1 percent decline from first quarter of 2011 but down to 5 percent compared to 2010. Additionally, when comparing the price of a foreclosure property to the price of residential properties that are not foreclosed, you can actually enjoy a whopping 32 percent discount.
With the average prices of foreclosed properties trending down and in view of the average sales discounts trending up, this report brings forth some great news for the well-positioned real estate investors that are looking to take advantage for great bargain foreclosure sale that can help build their wealth in the end. In addition, with more and more people seeking rental spaces, aside from short selling the foreclosed property, you can consider renting it out.
The significant increase in volume of the pre-foreclosure sales along with the massive discounts on foreclosures all point to the fact that the American housing marketing is aggressively starting to direct its focus on efficiently clearing out of the distressed inventory. This is done through streamlined short sales, which is now performed and have met some degree of success in some key areas and cities.
This is not only great news for real estate investors but also for homeowners, by giving them a chance to complete a sale of their home and avoid the foreclosure of the property. This is a win-win situation. Additionally, the streamlined short sale method is also highly advantageous for financial lenders and banks as it presents an opportunity of purging preemptively the non-performing loans and removes it from their portfolios thereby avoiding the long, expensive and often messy process that comes with theforeclosure of properties as well as the subsequent sale of an REO. With the overloading in the REO department, third parties investing in short sales provide a great reprieve for distressed homeowners and banks.
If you are looking into building your fortune through strategic real estate investment, this is one of the most feasible routes to take that does not only provide you a chance to help out people in dire need to third party assistance but also enjoy great profit on short-term sales.
Article Source :
Author Resource :
Foreclosure.com provides millions of distressed property listings in one location.