Looking for Foreclosures? Buy Now – Inventories are Declining

by on Foreclosures

Foreclosure Home for Sale Sign in front of a Big House

Since the real estate market crash and resulting foreclosure crisis, there have been a high number of distressed properties on the market, which has contributed to the low home prices and buyer’s market. Today, however, the tide has turned and the number of home entering into foreclosure is steadily declining and therefore so is the inventory of discount properties.

As a result, home prices are rising and the overall real estate market throughout the country is making progress.

Specifically, foreclosure inventory declined 3.91% from April to May of 2013 and 26.98% from 2012. At the same time, home loan delinquency rates are also declining, dropping 12.01% from May 2012 to May 2013. In short, the number of homes entering into the foreclosure process nationally is declining and therefore those looking for these discount properties should start their search today while these homes are readily available.

Searching for Foreclosures – Look for States with High Foreclosure Rate

Despite the national inventory decline, there are still some states that have a high foreclosure rate and are great places to start your search for discounted properties. For example, New York and New Jersey both have high foreclosure rates; therefore, if you have been looking for a discount property in these states then you may very well be able to find one relatively easily.

Regardless of where you are considering purchasing, the best way to find foreclosures is by relying on online listing services that specialize in providing up-to-date information on distressed properties on the market.

Avoid Areas with Low Foreclosure Inventories

When searching for the best deals on the market, you should avoid areas that have few foreclosure homes and other distressed properties on the market. These places tend to have bidding wars and often have homes leaving the market above the asking price; therefore, these properties are less of a deal than if you purchase foreclosures in an area with a high inventory.

Furthermore, many investors have taken an interest in purchasing these homes from the market and therefore you may wish to avoid areas where investors are flocking to in order to obtain the best bargain price. For example, the Las Vegas real estate market is currently booming, as those with an interest in real estate market investing are purchasing properties while home prices are still low.

The CNBC video below has more information on the current real estate market including where some of the best bargains can be found.

In conclusion, now is a great time to purchase a home as home prices are still low and discount properties can still be found throughout much of the country – if you know where to look.