"Scratch & Dent Sale" Will Help Bring Market Back

Foreclosed homes are disappearing as investors and homebuyers avail themselves of low prices, historically good interest rates, the $8,000 first-time buyer tax credit and programs such as the USDA's 100% financing option. For example, of the eight homes in the $250,000 - $300,000 segment that went under contract last month, six were reposessed properties, many new construction.

If you are considering a new home, the inventory now is ten percent stronger than last year with 310 homes on the market.

There are 58 homes priced under $200,000, an increase of nine percent. Homes priced from $200,000 - $249,999 have a 90% increased inventory over last year's level of 39. There are 74 now.

There are 64 in the $250,000 - $299,999 range. Last year there were 56 at this time. The number of dwellings in the $300,000 - $350,000 price point have dropped to 26 from last year's level of 45; although some of the shift can be attributed to repossessed new construction.

The selection of $350,000 - $399,999 homes remains the same in number from last year with 22 now available. And homes priced in the $400's have grown by four to 23 on the market. There are three fewer homes in the $500,000 - $599,999 bracket with ten now for sale.

Homes in the uppermost segment of $600,000+ have seen a 43% increase in selection with 33 available versus the 26 seen last year.

Last year, at the beginning of April, there had been 73 homes sold in this market. This year we've had 43 so far, a decrease of 41 percent.

Home sales in the $400,000's have dropped from four to one so far this year. Homes listed in the $500's have seen two sales, versus three a year ago. And last year we had had two sales of homes in the $600,000+ and in the $300,000 - $349,999 segments. This year, none.

The number of homes sold in the $250,000 - $299,999 and $350,000 - $399,999 sectors have held even from last year's figures with ten and five sold respectively.

The two lowest price segments are under last year's levels with seventeen homes sold in the under $200,000 segment, versus 29 last year and seven having sold in the $200,000 - $249,000 segment against nineteen previously.

Serious investors from J. Paul Getty to Warren Buffet have attributed success to their philosophy of buying when others are fearful and it appears people are beginning to realize both the wisdom of that philosophy as well as the fact that no one can predict where the bottom of the market will be. Buying now may not get you the absolute best price on a home, but delaying could find you without the home you wanted and at a higher interest rate than previously available, cancelling out the advantage of the lower price. And with market levels where they are, it is a buyer's market. Sellers are aware of this fact as repossessions and slower market sales keep pressure on prices. But as the repo's leave the market that pressure will lessen.

Indicative of this market awakening is the number of homes sold within the last six months. A month ago there had been 24 sales in the market. As of the end of March there were 43 sold. While the market is down 41% compared to last year, over the last six months activity is only off by 27 precent with 118 sales since October.

So whether you are looking for an investment property or a new home, a repossession or a good property at a very do-able price, be aware. Opportunity knocks. It doesn't beat down your door.

Other markets are improving and ours is as well. To view the current inventory, visit: www.portangeles.com or call me at 457-0456 for information.