Foreclosure Condos For Sale Rate Drops To Lowest in 20 Years

by on Foreclosures

Recently released data shows that sales rate of foreclosure condos for sale in Massachusetts dropped to its worst figure in 20 years. Warren Group reports that February sales of condominiums in the state sank to 18 percent compared to 15.7 percent last year. The said group is a company that monitors real estate activities in the area.

But condominiums are not the only properties that posted dismal performance. Sales of other types of foreclosed homes in Boston also fell with median prices of single-family dropping at least 5.5% below February 2010 levels. Prices of condominiums on the area hit 4% below its median last year.

Many realty specialists speculate, however, that the drop in sales could be due to an unusual winter season, putting the market in an inactive state. Because of the extreme weather, sellers may have also reluctantly put off their business until such time when market activities could resume.

Sales of Massachusetts foreclosed homes for sale may have also been affected by the prevailing worries over the market’s stability, increasing gas prices and other economic woes. Even the more affluent Boston neighborhoods are not spared from the sluggish industry sales.

Apparently, people are skeptical over the state of the economy and are putting off large purchases in the meantime. The expanding numbers of job losses and unemployment is also not helping in inducing sales movements for house foreclosures for sale.

Buyers who are still interested in foreclosed properties will find that there are fewer choices on the market as inventories of foreclosure condos for sale and single-family homes become more limited.

Despite an index showing a nationwide slump in home values in 20 large metro areas, data reveals that homes now take a lot more time to sell compared to the same period last year. While Boston may still be faring better than its counterparts, it still posted a drop of 0.6 percent from January last year.

Analysts say that these data are showing the market has grown stagnant and that buyers and sellers may be at a standoff – with neither willing to buy or give discounts.

As a result of this standoff, many fears that the situation could well develop into a longer period of market inactivity. However, there are indications that despite the stagnant market, home values are still better by 4 percent than its levels two years ago. If the economy starts improving, the market could also slowly pick up and sales of foreclosure condos for sale could see better times.