foreclosures

Cash Buyers Creating Bidding Wars

We saw this quite a bit in 2009 here in Atlanta - foreclosed properties receiving multiple bids.  The winners of the bids are often cash offers from investors leaving would be homeowners scratching their heads wondering how to win the bid.   Here is a great article from the Washington Post about Cash Buyers Triggering Bidding Wars.   

There are some great options for folks looking to buy and live in the home – such as the HUD programs which allow for owner occupied bids over investor bids for the first 2 weeks of property being listed.  The catch on some of these homes is the bidder needs cash to cover any overages and/or closing costs. 

I had a client this past fall who successful outbid the other offers on the table with a financing contingency.  We went over on the asking price but he has moved in and has a great house in a great area.  And though he paid over the asking price, the house was still below what has sold in the area and needed minimal repairs.

Remember the tax buyer credit is still out there!

foreclosures

Atlanta Market Update – August 2009

An article in the AJC today reports that the median sales price of single family homes in metro Atlanta rose in the 2nd Quarter of 2009.   The metro Atlanta median sales price was $121,400 in the 2 nd Q of 2009, up 5 percent from $115,600 for the 1stQ of the year.  The current median sales price is 23 percent lower than it was this time last year, $158,300, according to figures released Wednesday by the National Association of Realtors.   Click here for the full AJC article.

When comparing the 2nd Quarter 2009 sales (number sold) to 2nd Quarter 2008 sales – there has been an expected decline in the number of sales.    2ndQ 2008 – total of 10,029 sales vs. 2ndQ 2009 – total of 8,520 sales.   But when broken out by sales price there is actually an increase in 2ndQ 2009′s numbers in the $200k or less sales price.    2ndQ 2008 total of 4,692 sales vs. 2ndQ 2009 of 5,035 sales.    Foreclosures and declining prices attribute to this increase in sales.

Foreclosures have had a tremendous impact on the 2009 market.  2Q 2008 - 19.5% of the sales were foreclosures compared to 2Q 2009 where 31.8% of the sales were foreclosures.  (Short sales are not included in these statistics at present as there is not a way to accurately track them.)   Certainly many buyers have been taking advantage of the falling prices & the $8000 tax credit to purchase homes.    As foreclores, short sales & great buys are purchased and the inventories absorbed – we should begin to see pricing stabilizing and eventually price increases.