More Buyer Interest for Foreclosure Homes in Fresno

More and more buyers are looking for foreclosure homes in Fresno as home prices remained very affordable despite an uptick, with the median sales price of a pre-owned home increasing to $141,500 from the $137,500 median in May.

In April, the median sales price of a pre-owned house in Fresno dropped by more than 7 percent to $130,000 in April after a nearly 10-percent jump in March. The increase in March was the first home price increase in the area in a period of 13 months, based on county real estate sales data.

Real estate analysts in Fresno said home prices are expected to fluctuate in the area as inventories of foreclosure homes also fluctuate.

As of the first weeks of July, current inventory consists of 2,384 condo units and houses in Fresno and in Clovis, which can be sold in only two months at current pace.

A total of 829 pre-owned homes were sold in June in Fresno, a 4.4 percent rise from home resales in May.

Another reason for buyers? interest in Fresno is the price declines in the higher-cost portion of the market. Homes previously listed at $600,000 have been selling at $300,000. A real estate investor representing McKinley Capital Partners even said that he has bought homes previously priced at $300,000 for $100,000.

Investors said the pace of foreclosures in the county has slowed down because of several foreclosure moratoriums implemented in California, but they said more repo homes will enter the housing market when these moratoriums expire.

Banks are also expected to release foreclosure homes which they have been holding in an effort to control the level of their nonperforming loans, but they are now forced to sell them because of rising defaults in the industrial and commercial real estate sectors.

However, some analysts said that banks may hold off foreclosure proceedings for a little longer because of intensified pressure from state and federal officials.

Recently, Treasury Secretary Timothy Geithner and HUD Secretary Shaun Donovan pressured banks to work out more loan modifications. They also started a scheme under which they will monitor how the country?s largest mortgage banks are implementing the Making Home Affordable program.

Publishing the performance of these mortgage banks will be one effective way of pressuring lenders to work out loan modifications.

Nevertheless, as home affordability improves in Fresno and as opportunities for real estate investments arise, buyers will continue to look for and heighten the demand for more foreclosure homes.

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