I know here in San Tan Valley and the Queen Creek area this is true. REO’s or foreclosures are no longer the “cheap” homes on the market. We have so few REO’s on the market that the bidding wars are raising the prices even more then the asking price. See the article below.
REO prices have risen 5.5 percent over the last year, whereas market sales prices have fallen 2.9 percent, Clear Capital reports in its April housing data index.
Investors are snatching up REOs, fueling price gains for distressed properties. Clear Capital, which measures median price per square foot, finds that REO prices are rising at a much quicker pace than prices for non-REO sales.
“Should investor interest continue to drive the expansion of REO-to-rental programs over the next several months, there could be a significant impact on the market overall in terms of providing a rising floor to home values,” says Alex Villacorta, Clear Capital’s director of research and analytics.
Source: “Bucking Trend, REOs Show Price Gains: Clear Capital,” HousingWire (April 30, 2012)
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