Foreclosure rate is the lowest since December 2007 in most states across the country!
Why does that make it a bad time to buy a foreclosed home? Let think about simple supply and demand. When there were a lot of foreclosures, there were a lot to choose from and that supply kept the prices down. People all over the twin cities were in a buzz about the "cheap foreclosures" you could buy and the word was spreading.
This mindset was good for banks trying to unload these properties. Simply labeling them "FORECLOSURE" made people believe they were a good deal and buyers started jumping on them.
Banks started implementing "traditional seller strategies" to raise the value of those properties by "putting lipstick on a pig" as some would say using fresh paint and new carpet to compete with traditional sellers and drive their property values up.
And as the housing market started recovering and the foreclosure inventory was depleted, the home prices of both traditional sales and foreclosures started rising.
Now that the supply of foreclosures is low, they are commonly "overpriced" or in multiple offers... and you are still getting all that potential headache comes with foreclosed home.
TAKE AWAY: Chasing foreclosures in this market may not be the best use of your time and money.
Want to read more about foreclosures? CLICK HERE
And of course you can always contact me directly to discuss your home buying strategy!