Prices do not appear to be falling too precipitously any longer. In fact, in certain cases there have been “over bids” where the offer to purchase is actually higher than the asking price for the home. For the most part, the damage has already been done. Prices in some areas of the metropolitan Detroit area have seen as much as a 50% decline from the high point of the market in 2006. There is less inventory, and many of the “nicer” homes are selling easily and quickly. Many of these sales are homes that are “priced right” and are short sales, or distressed properties. The foreclosures have slowed and the banks seem to be embracing the concept of accepting short sale offers recognizing the obvious advantages to doing so. Will the trend continue? We are seeing more homeowners that are frustrated as they have been held hostage in their homes for over 5 years around the time when the financial meltdown started. These individuals were holding out for the market to recover, and now don’t see that happening any time soon. It doesn’t appear that the national or local economies are stable nor are they growing fast enough for any measurable appreciation in home values. As long as this is the case, there will be the necessity for short sales.
If you or your client are interested in a free consultation to discuss the nuances of a short sale based on your circumstances, please contact me.
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