This recent article from Yahoo! Finance indicates that the Chicago/Naperville/Aurora area is still very active in foreclosures. Statistically, the average discount a foreclosure priced out at a nearly 48% discount. Average prices for the homes sold in the third quarter was $139K. With a shadow inventory of bank owned properties still looming, our Fox Valley area may still offer deep discounts for home buyers. A shadow inventory are properties that sit unsold on the banks’ books. Many banks have hundreds of properties waiting around to be sold for a better price but if they wait too much longer, a flood of them will be released into the market, disrupting the balance of home sales with the sudden glut.
However, the good news is that a home buyers today are showing increased signs of getting off the fence with making offers, at times multiple offers, for a particular property. They can still afford to be picky, however, when perhaps a year ago they were the only interested party looking at buying a particular home, now they may have competition to purchase, which could mean raising their offer above asking price. Investors in particular, are making a return to flipping, so they know what Realtors have already begun to see last spring: Welcome Back Housing Market!
Are you waiting for 2013 to see your home listed and sold? Let me know and we can put together a free market analysis and see the home’s current market value!