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Based on MLS searchs for various areas of NY, Arkansas and Florida you would think we are still in the midst of the boom. If I am looking for bargains effected by the current economic climate should I be solely looking at foreclosure sites?
I am not really seeing any differece in prices and in fact are seeing much higher land and residential home values compared with just the minor dip we had just a few months ago.
Either the media is bulls h i t because of a few select depressed areas or using the web should I expect complete bull s h i t for a real estate search?
#1 nicer more desirable neighborhoods, particularly those over $400K, have not been hit as hard as the lower end properties(though that will soon change).
#2 listing prices are just all over the map and many sellers are cluelessly unaware of current market conditions. I've seen bombed out properties in my area sit for over a year and even be withdrawn from MLS and sit vacant as owners get pissy that their houses aren't worth what they were a few years ago, while others that are cleaned up and realistically priced are bought up by the listing agent or their favored clients/family members before they even hit MLS.
Based on MLS searchs for various areas of NY, Arkansas and Florida you would think we are still in the midst of the boom. If I am looking for bargains effected by the current economic climate should I be solely looking at foreclosure sites?
I am not really seeing any differece in prices and in fact are seeing much higher land and residential home values compared with just the minor dip we had just a few months ago.
Either the media is bulls h i t because of a few select depressed areas or using the web should I expect complete bull s h i t for a real estate search?
Some neighborhoods are just not affected by the current economic environment. I can think of 4 off the top of my head that have continued to appreciate and probably will. Homes don't come up for sale often in those areas.
I read that 80% of foreclosures are in 5 states, not sure if that is true or not, but it wouldn't surprise me. I know an agent in FL where 90% of his market is distressed properties. 10% of my market is.
My MLS marks distressed properties. You can ask an agent to set you up on an automatic MLS search with distressed properties as one of your criteria. Then homes will automatically be sent to you that are distressed.
Thank you Silverfall for the info and for your comment about how SOME neighborhoods are still doing well in terms of home values. I feel like you are providing a balanced analysis and not simply jumping on the "low, low, price" bandwagon.
Sure, things are ugly out there but maybe not so ugly everywhere. I get so annoyed with broad assumptions about the market and how all of real estate is going to the dogs and sellers should be thankful to recoup a few cents on the dollar on the sale of their homes.
My experience shows me that a.) some neighborhoods have remained pretty darn stable through these rough times and b.) some places simply do not have declining property values. The place we are looking to move has a longer "days on market" than our current area but property prices DO NOT drop. There may some heated negotiations once an offer is made but as far as price dropping during the listing period - forget about it.
Price reductions in my area (suburban Chicago) are very real. Depending on the type of suburb it may be hundreds of thousands off a very high end property that would have sold for something on the far side of $1.5M or a few thousand on a solid desirable older home in a more modest area.
Foreclosures HAVE rocked some part of the market badly, but others are still stable. Entry level homes (which range up to perhaps $500K in some towns, believe it or not) are least effected, and really desirable higher end homes are second most immune. There are some people that apparently have been able to 'grow their wealth' even in these stormy times and they too want their reward.
Bargains are completely relative. If you want to see a home that at one time was listed over a $1M but is still no bargain because the bank has taken possession of it and is attempting to market it for $700K, I will happily tell you the story of the foolish 'flipper' that never should have tried to upgrade the property as much as they did and should have tried to keep a nice rental or starter home as the location is such that it has very limited appeal.
OTOH, in that same town I can show a terrific bargain on a house that is now listed at $549K that even at peak would probably be no more than perhaps 10% more, as it is perfect for a young couple or a family that wants to have a well built impeccably updated /decorated home that is walking distance to schools, commuter trains, shops and dining.
#1 nicer more desirable neighborhoods, particularly those over $400K, have not been hit as hard as the lower end properties(though that will soon change).
I'm not in one of the states the OP posted about, but my area is just exactly the opposite. The high end, nice houses are down as much as 50%, where the starter homes are actually holding steady or have lost a small percentage. My house is actually up about 15% from when I bought it in 2003, but down from the peak, also by about 15%.
The web is generally a poor indicator anyway. Sites like Zillow don't use enough information, or are too out of date to be at all accurate. Real estate websites aren't monitored in my area, and I've gotten calls many times about a house someone "saw on the internet" that was sold 6-8 months or even a year prior, but was still floating around on someone else's site.
That said, there are some great interfaces out there, so many websites may be giving you up to the minute information if the MLS permits it. Find one of those, along with a good interface and you have an ally in your search for a "bargain". Unfortunately, there is no way to determine which one to use based on face value.
Quote:
Originally Posted by jpicard
Either the media is bulls h i t because of a few select depressed areas or using the web should I expect complete bull s h i t for a real estate search?
Yes. It is partly the media, overgeneralizing as if every area is having equal problems, and it partly the internet not giving you up to date information in all cases, or a bad interface not letting you ask the right questions.
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