Thursday, November 5, 2009
An uptick in Foreclosures and Short Sales
I noticed an interesting trend yesterday while hunting for HUD homes on their website at www.hmbiweb.com. There has been an increase in the active inventory of foreclosures in the Central Virginia MLS, 399 in total for homes priced under $1MM.
For months, there has been news of a so-called "shadow inventory" of homes that banks have owned but not yet put on the market, and while there continues to be that shadow inventory, the banks are beginning to release some of those homes as the market has improved, largely based on the 1st time $8000 tax credit.
Interestingly enough, short sale activity is also on the rise with 217 short sales currently available for sale. The good news here is that agents and banks have improved markedly in this process. While its still laborious, its not as much so as it was say a year ago, as many listing agents have undergone training and many banks have hired firms to expedite the package/negotiation process.
Again, it continues to be an interesting time in the real estate market, as well as a great time to get some amazing deals as buyers with the trifecta of low prices, low interest rates, and tax incentives to buy!