Michigan Foreclosures Receiving Multiple Offers
Michigan Foreclosures Receiving Multiple Offers
In Genesee County, Michigan, market conditions seem to be different than what can be observed in most housing markets. Instead of the buyers enjoying the advantages, it is the foreclosure sellers who are receiving multiple offers. Such situation has made many experts think if the local real estate market is finally recovering from the mortgage mess.
Many buyers and foreclosure investors are discovering themselves in the midst of a bidding war with the others. According to one local broker, multiple bids can be observed on about 60 percent of all the foreclosure properties. Because of this, many of the foreclosed homes are sold at a price higher than their asking prices, especially those considered to be at the low-end.
Considering the multiple offers and reducing inventories, it can be expected for the homes prices to go up. After all, these two factors were mainly responsible for the homes price decline in recent months.
Unfortunately, the increase in home prices can only be observed in these foreclosure homes sale and not the traditional ones. For analysts, home price recovery for the other homes will still be a couple of years away.
From January to July of this year, it was recorded that 54 percent of the home sales were actually foreclosures, according to the Flint Area Association of Realtors. Sales during these months reached 3,078 compared to 2,804 last year of the same period.
On the other hand, average home sale price for the first seven months of the year dropped from $112,117 to $83,364. This figure might drop even further as home price decline has yet to bottom out.
It is certainly a good sign that real estate investors are no longer staying in the sidelines and have even decided that these foreclosures will be worthwhile investments. If there is any hesitation on their part about the timing, they should simply consider the multiple bids on these foreclosed properties to know that the market might no longer be favoring them.
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