Study : “Distressed Homes” Sell At A 20% Discount.

Home resales rose 4 percent last month, according to the March Existing Home Sales report. A total of 5.1 million homes were sold on an annualized, seasonally-adjusted basis.

Long-Term Trend : Outlook Strong

The strong results re-establish the national, long-term trend toward rising home resales. March marked the 6th month out of eight in which sales volume has increased and sales are up 32 percent from July 2010 lows. Home supply has resumed its downward trajectory, too.  At the current pace of sales, the entire home resale inventory would be depleted in 8.4 months. This is 0.1 months faster as compared to February, and a full month faster than the 12-month average.

40% Of Home Resales Are Distressed Properties

The March Existing Home Sales report also included a breakdown by buyer-type.

• First-time buyers bought 33% of homes, down from 34% in February
• Repeat buyers bought 45% of homes, down from 47% in February
• Investors bought 22% of homes, up from 19% in February
• 35 percent of buyers paid in cash.

And, perhaps most noteworthy, according to the National Association of REALTORS®,

• 40 percent of March home resales were "distressed properties". Distressed homes include foreclosures, short sales, and REO and typically sell at discounts "in the vicinity" of 20 percent.

Supply-And-Demand Dictates : Home Prices Will Rise

Home prices are based on Supply and Demand. So, with home supplies dropping, and demand for homes rising, we can expect home values to increase later this year.

Play the trends to your advantage. Call me at 513-443-2020, or click here to send me an email with some notes on your situation. I'll get back with you on rate quote, and a pre-approval letter, if you need one.

Today, homes are cheap and mortgage rates are low. This may not be true later this year. The best "deals" may be what you buy now.

About the Author

Shawn Kaplan is an active, multi-state Licensed loan officer with Access National Mortgage. Email Shawn at skaplan@accessnational.com or call 615-426-3182.

Bonus: Click to get a free, no-obligation rate quote. I love to work with my readers!

Are The “Good Deals” In Foreclosures A Thing Of The Past?

Mortgage rates and markets change constantly. Stay 100% current by taking The Mortgage Reports by email each day. Click here to get free email alerts.

Foreclosure activity is slowing, it seems. If you're shopping for bank-owned homes, therefore, supplies may be limited.

Less REO Means Fewer Foreclosure "Deals"

According to foreclosure-tracking firm RealtyTrac, the number of national foreclosure filings plunged 35 percent in March 2011 as compared to March 2010. A "Foreclosure filing" is a catch-all term comprising default notices, scheduled auctions, and bank repossessions.

Foreclosures filings were down in all but 8 states last month. The rapid improvement is a reflection on both the housing market and the economy -- each is outperforming expectations.

Activity remains concentrated, too. More than half of all bank repossessions can be tied to just a handful of states.

Like Real Estate, Bank Repossessions Are Local

In March, just 6 states accounted for 51% of the country's bank repossessions. If you're an investor buying foreclosures, or a first-time buyer looking for a deal, you'll find more raw foreclosures in these 6 states:

1. California : 15% of all repossessions
2. Florida : 9% of all repossessions
3. Arizona : 7% of all repossessions
4. Michigan : 7% of all repossessions
5. Texas : 6% of all repossessions
6. Nevada : 5% of all repossessions

And then, at the other end of the spectrum is Vermont. With just 5 repossessions for all of March, Vermont accounted for 0.008% of repossessions nationwide -- the lowest rate in the country.

Use A Free Foreclosure Search Engine

Foreclosures and short sales are in high demand with today's home buyers, accounting for almost 40% of all home resales.

It's no wonder. Distressed homes typically sell for 15% off as compared to non-distressed homes. Buying foreclosures can be a great "deal". The hard part can be finding them.

One trick to finding foreclosures is to search the databases that other buyers aren't. There's plenty of free ones available, including RealtyTrac's free foreclosure database and the one from HUDForeclosed.com. Both sites give 7-day, all-access membership for free.

After 7 days, you can cancel your membership, or stay on as a paid member.

Then, after you've narrowed down your search, call your real estate agent to see the home, and start with negotiations. Buying foreclosures is different from buying "traditional" homes. You'll want somebody experienced to help you.

Otherwise, the banks may work you over a bit.

Get A "Foreclosure Pre-Approval"

Once you've done your foreclosure research, call or  click here to email me for a foreclosure-specific pre-approval letter.

I'm experienced with short sales, REOs and my bank can close quickly. I finance homes for investors with more than 4 mortgages, and I offer the HomePath product, too.

Plus, my rates are great.

About the Author

Shawn Kaplan is an active, multi-state Licensed loan officer with Access National Mortgage. 

Email Shawn at skaplan@accessnational.com or call 615-426-3182.

Bonus: Click to get a free, no-obligation rate quote. I love to work with my readers!