This year has been the year to buy foreclosures. Banks have been dumping undervalued properties into the market. Normal non-distressed properties have been far and few between. Owners have been in shock over what could have been a few years ago had they put their properties on the market then. How difficult it must be to put a home on the market and compete with bank owned fire sales. This is exactly what we have been seeing lately.
I have been a little amazed at the non-distressed properties that are entering the market at great prices. This is going to have an impact on the foreclosures. There won't be as many multiple offer frenzies on bank owned properties now that buyers understand there is an alternative. Some of these non-distressed properties are original owners or owners who have occupied for 20 plus years! Another great thing about these properties is the property taxes. The taxes are low, homesteaded prices that never jumped in 2005. It is actually easier for a buyer to qualify for a loan on these non-distressed properties because of the property taxes.
Finally, the more we see this kind of seller making a move, the better it is for the economy. These sellers are not going to rent. They are going to reinvest this money again in some type of real estate stimulating the economy wherever they go. This will mark the beginning of a stabilization in the real estate market and hopefully a turn around in the national economy.