Category Archives: Buying a Foreclosure

Where is the Shadow Inventory?

For the past several months the media has been reporting about all of the shadow inventory of homes that is going to hit the market like a tsunami wrecking havoc on the gentle recovery we are beginning to see, or producing big opportunities for investors ready and waiting to snatch up a deal.  This report from Freddie Mac downplays the possibility of shadow inventory having a noticeable impact on the current inventory.

Freddie Mac: Threat of shadow inventory subsides, home prices rise

by: Kerri Ann Panchuk

It’s often feared a shadow inventory of homes will flood the housing market derailing the fragile recovery that some now believe is under way. But a new report from Freddie Mac says this view may be too pessimistic given today’s rising home prices and falling REO levels.

While the real estate market has its share of distressed loans and assets looming on the sidelines, the nation’s excess supply of vacant properties continues to fall, simultaneously making room for more REO absorption, Freddie said in its August “U.S. Economic & Housing Market Outlook” report.

“This continuing shrinkage in excess vacant stock is important because it means that in most markets the REO homes on the for-sale market are not competing with an oversized vacant housing inventory,” the government-sponsored enterprise asserted in its report. “Thus, REO homes may be more attractive to investors and first-time buyers because fewer vacant homes are available, and REO sales will have less effect on other home sales or home values.”

The rental vacancy rate alone fell to 8.6% in the latest Freddie report, its lowest point since 2002. The for-sale vacancy rate also declined to 2.1%, a six-year low. The market also is seeing fewer REOs with CoreLogic’s sales database revealing that REO sales made up only 13.5% of all May sales, their lowest share in four years.

The good news is a smaller supply of REOs can buoy home prices. That trend is already occurring with Freddie’s home price index rising 4.8% from March to June, the largest quarterly increase in 8 years. The national index also posted a year-over-year gain of 1%.

Thirty-four states and the District of Columbia saw home values rise during the 12-month period leading up to June 2012, the largest number of states with positive annual appreciation in five years.

Just a few years ago, the nation faced an “unprecedented oversupply of housing stock,” Freddie said. But with homebuilding suppressed for years and more households finally forming, a great deal of that excess inventory has already been absorbed, the GSE said.

See the article here on Housingwire

Atlanta Ranks 7th of Top 10 Markets For Real Estate Bargains

Trulia identified 10 U.S. cities that are home to the biggest price reductions on non-foreclosure homes in 2011 listed on Trulia.  Atlanta ranks 7th.  Whether you’re in the market for your dream home or ready to invest in real estate, Atlanta is the place.

See full article and list of cities

 

More Negative Real Estate News for Atlanta?

Since the housing crisis began, it seems we have been on a constant roller coaster of changing news reports about homes sales and home prices rising and falling. One report has Atlanta faring better than other major cities while another report has Atlanta being hit the worst.  While they all point out true and relative information, real estate is still all about LOCATION, LOCATION, LOCATION.  While every area and price range has been affected throughout Atlanta, the sales and prices in areas with the best school districts have remained stronger than others. When making a decision about buying or selling a home, it’s important to analyze the data for the specific area of interest.  Unfortunately we’re seeing buyers that listen only to the overall negative news hoping for a great deal and sellers that listen only to the overall positive news that don’t want their home sale to be affected by the market.  I have seen positive aspects of this market for buyers and sellers, but the best way to achieve your goal is to open- mindedly review the data in each area and make an informed decision.

See the latest infomation reported in the Case-Shiller index

Walton High School District has a Rise in Pre-foreclosures in November

A valuable tool I like that combines real estate information from FMLS, tax records,and public records into a combined format is RealValuator. It’s a great place to be able to analyze sales and trends in different areas without having to go to several different sources. They recently analyzed the Walton High School District and noted a significant rise in pre-foreclosures in November over other months in 2011.

As reported by RealValuator:

This week’s RV InSite focusses on the Walton High School district with a price range between $50,000 and $2,500,000.The first trend to notice is the increase in Pre-Foreclosure notices from September 2011 (791 notices) to November 2011 (1285 notices). While September and October notices are below the monthly average, November is the highest total over the last twelve full months. The good news is that while the Pre-Foreclosure notice number is rising, the amount of homes foreclosing is decreasing over that same time frame. Though a factor to this could be the banks putting holds on Foreclosures till the new year, much like they did last year. The second trend to notice is Foreclosure Grand Total (2,838) compared to Bank Owned Sales Grand Total (2,625). In this area, Foreclosures are happening at a faster rate than the REO Sales. This is a case
where the troubled assets are coming in faster than they are going out. In other words, it is difficult for the Walton High School district to recover from the distressed market when more distressed assets are added than they are getting rid of.’View Full MarketStat Report
http://realvaluator.com/s/EFahI think it’s important to note that the price range of these pre-foreclosures is in the lower price point for the Walton High School District.  Walton remains one of the most highly sought after school districts around Atlanta and there have been 421 sales reported by FMLS since the beginning of 2011 with 93 of those sales over $500,000. For a complete list of current foreclosures in the Walton School District, contact me at 404-626-1874 or dede@atlantafinehomes.com
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