Positive News about “Distressed” Home Salesadmin / 0 Comments /
Foreclosures on homes in many U.S. cities lead to investors purchasing these “distressed” homes at deeply discounted prices. Consequently, the value of the other homes in these cities declined as well.
However, some good news has been released about this sector of the real estate market. According to an article published in DSNews.com by Brian Honea, there has recently been a decline in the number of distressed homes for sale. More specifically, as of May 2016, the number of distressed homes for sale decreased by 4 percent over the year. The lower inventory of foreclosed, REO and short sale homes has helped increase the demand for homes and, subsequently, increased the home values in those areas.
Honea quotes CoreLogic Chief Economist Frank Nothaft, “Overall, the homes-for-sale inventory remains relatively lean, while demand to buy homes has increased because of an improving labor market, more optimistic levels of consumer confidence, and continuing low mortgage rates.”
To learn more, read the entire article.
Photo Credit: Taber Andrew Bain