According to the latest news , the number of foreclosures in the United States seems to be growing on through the end of 2011 and into 2012. In August 20111, Notices of Default rose at the rate of 33%. What are Notices of Default? Well, this is the first step on a downward movement for homeowners in that this means that they are about 90 days behind on their mortgage payments. This means that they are farther along in the process than say, perhaps those who are just 30 days behind on their payments, and at this 90 day state, they are less likely to catch up on those unpaid balances.
Of course, not all NOD’s turn into foreclosures, but most of them do! What this means for investors is that there will be more foreclosures on the market going into 2012 and opportunities to buy a home on the “cheap”. It will also mean bargains will continue for First Time Home Buyers, too!
It is reported that Major Cities are still leading the pack in NOD’s and foreclosures filings. For Instance, Los Angeles they estimate has 200,000 homes that will move toward foreclosure from now onto the end of 2012. The top list of States where they are high in foreclosure filings are California, Arizona, Nevada, followed by Oregon and Washington. It is estimated now that 2 MILLION Homes are 90 days or more behind on payments and another 2.2 MILLION homes are already waiting to be put on the market here in the U.S.
For Investors, Rental Property owners and prospective home buyers, this will be good news, and really the market could not be better. If you have access to Credit or capital, coupled with still historically low interest rates, this is the time to buy. A home is now more affordable than ever!
Yet not all is bad news for Pricing. It is estimated now that 100 of 385 major markets in the United States will actually hold their own or even gain in average prices for their dwellings, some 5% up and some up to 10% up. Yet, the pricing dips over the last few years could continue on into 2012. Meaning that if on average a home cost $200,000 IN 2006, the prices have declined enough to average today’s selling price for that same home at $138,000. Just about a 33% dip averaged nationwide for home prices.
All in all, the investor, (or even the prospective home owner) goes by the saying, “buy-low, sell-high”. The upcoming year should give all buyers plenty of opportunity to do just that.