People Who Buy Repo Properties Got 27% Discount in May 2010

Investors and individual home purchasers who buy repo properties got a bit more discount during the month of May 2010. According to the latest housing market reports, the average discount offered by repo homes to buyers is 27%. This figure is in comparison with the same month of 2009.

May also showed that people who purchase distressed homes increased their property shopping activities during the month. Nineteen metro cities in the U.S. recorded increased home sales in May 2010 compared with May 2009. Total sales for the month included foreclosed and repossessed residential properties.

Most major cities' bank owned property listing gained homebuyers' attention during May, mainly because of the federal tax credit program. Even hard hit areas like San Francisco and Minneapolis recorded higher home sales during the month, according to the latest housing industry statistics.

The latest news of foreclosures mostly point towards a recovering housing market, with sales and home prices up in most major cities of the country. However, market analysts warned that the rise in the number of sales during the month does not signify a recovery since most of these numbers are accounted for by foreclosed and repossessed properties.

According to them, people who buy repo properties account for almost a third of the total nationwide sales. Short sales also take in a huge part of the May home sales. This means that the total worth of houses sold during the month is lower than what is needed for the market to take a significant step towards recovery.

Real estate experts have explained the relatively higher discounts available for repossessed properties. According to them, most of these homes require repairs and are usually in less-than-desirable conditions when they came into the market, thereby lowering their prices considerably. Experts also added that most banks that sell repossessed properties are eager to unload these structures, hence their willingness to accept the offer price of most buyers.

People who buy repo properties accounted for a high percentage of home sales during May, hence the reluctance of market analysts to declare a recovery. However, they also stated that the industry should welcome the news that prices of dwellings have risen by 1.3% compared with April.

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