The Effect Foreclosures Have Had on the Real Estate Market

Buyer, Seller, Foreclosures

I have been reading how only foreclosures are selling in today's real estate market. While there is no arguing with the fact that there are many foreclosure, short sale and pre-foreclosure homes for sale in Jacksonville, that does not mean that they are the only properties selling.

Furthermore, just because it is a foreclosure, it doesn't mean you will get that much of a better deal on the home. And while a foreclosure in your neighborhood will increase marketing time for the other homes on the market and potential effect values in the neighborhood; it doesn't look like they have had a major effect on the Jacksonville Real Estate Market as a whole.

I found that 28.22% of the sales in Jacksonville metro area were foreclosure/pre-foreclosure/short sale homes when looking at residential sales data between 7/1/08 and 8/4/08 from the MLS. The "Foreclosure type" sales sold at average of 93% of list price whereas normal sales sold at 95%. "Foreclosure type" properties also took 103 days on average to sell while normal homes took 108 days.

Thus the majority of properties sold were normal homes. The "foreclosure type property" only sold for 2% less off list price then a "normal home". The foreclosures don't seem like that great of a deal when considering that foreclosures typically have some sort of deferred maintenance or other type of remodeling/updating needed.

So when shopping for your next home it is important to consider all your options, make offers and get a good inspection.

Happy Home Shopping Jacksonville!

foreclosures (6) real estate market (22)

Date: Tuesday, August, 12th 2008 @ 10:19:00 PM
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