Prices of residential properties continue to drop in most cities of the U.S. as bank owned properties dominate the home selling market. Data for October showed a drop in housing prices in most hard-hit areas compared with September, including Las Vegas, Detroit and Phoenix.
Despite the drop in prices and the expected resurgence in the number of bank owned homes in 2012, majority of housing market observers believe that the year will bring some semblance of improvement in the industry. However, the recovery will vary from one area to another as some regions demonstrate the ability to stabilize quicker than others.
Homebuyers Gaining Confidence
The improving economy and the vast amount of cheap bank owned foreclosures are contributing to the confidence of homebuyers. More purchasing activities are anticipated this 2012 as buyers and investors take advantage of the low mortgage rates.
Areas that have the cheapest properties and those that are perennially known as tourist destinations, like Florida, California and Nevada, are likely to enjoy the highest buyer traffic during the year. Despite the current housing sector having all the characteristics of a buyer's market, analysts are confident that the year will also be good for home sellers, though most will have to continue to cut down their asking prices.
Sellers to Share in the Benefits
It is not only homebuyers and real estate investors who are expected to get a good 2012. In some areas of the country, like Michigan and Washington D.C., housing markets are starting to stabilize as year-end data for 2011 show positive annual returns.
Although home prices are still down in these markets, the pace of decline has slowed down as 2011 ends compared with 2010 figures. In 2012, more improvements are anticipated as more homebuyers enter the market and make a last dash for the remaining bank owned houses that are being sold at bargain rates.
Related Posts:
- Various Options in Dealing with Bank Owned Houses
- Home Prices in Nebraska Not As Affected by REO Bank Owned Properties
- Buyers Turn to Bank Owned Homes As Recovery Signs Appear in the Housing Market
- Inventory of Bank Owned Houses Declining, but Real Estate Trends Remain Local
- Sales of Bank Owned Houses Helping Hard-Hit Areas Recover
