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Opportunities Abound in Foreclosure Crisis
By jason | June 11, 2008
A couple of years ago, Bay Area properties are considered to be among the most expensive homes in the state. But thanks to the present foreclosure crisis, buyers looking for affordable homes in this city are now provided with plenty of amazing opportunities.
Individuals, families and investors who previously could not afford Bay Area properties are now purchasing foreclosure homes offered at unbelievably-low prices. There are even homes with asking prices that are half of their market value some years ago. Of course, buyers can expects these distressed homes to be on the neglected side since they are sold as is. But even so, the low asking prices mean that these buyers will still have some money left for repairs.
Home prices in the state have been declining steadily since last year. It did not help that California has one of the highest foreclosures rate in the nation. Mortgage lenders who find them selves saddled with these foreclosure properties usually try to sell them off immediately in order to avoid incurring high holding costs. Unfortunately, this trend has also seriously depressed the value of neighboring properties.
According to the California Association of Realtors, more families are now able to own starter homes compared to last year. Since median home prices have declined dramatically, owning your very first home is no longer impossible. Sales transactions are even fast with buyers making offers almost immediately.
Some buyers are still holding back especially with news that home prices might even fall further. But for most experts, there is no better time than now. Those who have good credit, sufficient cash and interested in buying properties in this area should buy now and stay put for the next five years. With the federal government working overtime to address the housing crisis, buyers should take advantage of these opportunities before market conditions turn against them.
Topics: Foreclosure Crisis |