More on Foreclosures

We continue to see signs of fewer foreclosures and price increases on properties.

Columnist George Yacik wrote in National Mortgage News last week that if you’re looking to buy a distressed or real estate owned property at a cheap price, you better move quickly-and be prepared to pay a lot more than you did a year or so ago

“The REO property numbers in the marketplace are definitely shrinking. For banks and the GSEs, REO properties probably peaked in the first part of 2012 and have been steadily declining,” says Chuck Newcomb, chief operating of an REO asset management company in Sugar Land, Texas, told Yacik.

Randy Wussler, vice president of product management and marketing at San Diego-based DataQuick, agrees that the “bull” market in distressed real estate has probably peaked.

“Inventory is tight, but there are more nondistressed properties on the market now than in the recent past and the discount rates buyers have enjoyed on distressed properties aren’t as high as they used to be,” he says. “As a result, the incentive for a buyer to consider a distressed property-and all the added challenges associated with this type of property-isn’t as great as it used to be, which will lead to lingering distressed inventory.”

“We do anticipate continued price appreciation in 2013,” agrees Wussler. “The market drivers are for the most part very positive.”

We will gradually see more confident buyers and sellers as we move forward into 2014.

Robin Taylor, Realtor

Century 21 Alliance

610-574-0015