Home values in the Fresno area have been increasing during the past few months. According to RealtyTrac, the average price per sq. ft for a Fresno home was $92.00, which was an increase of 12.2% over the last year. The median sales price for a home in the Fresno area during the period July 12, 2012 through August 12, 2012 was $149,243, reflecting a 16.4%, or $20,993, from the same time last year. Although the number of home sales decreased 20.7%. There are currently 1,191 homes for sale in the Fresno area, with 3,424 homes in some sort of foreclosure process. Realty Trac reported that there are approximately 1,422 trustee sales in the Fresno area.
According to local Realtors, inventory is at an all time low with approximately 70% less inventory for sale compared to last year. Foreclosure and short sale inventory has been reduced with investors and first time buyers competing for these bargain homes. It is anticipated that lenders will clear their distressed property inventory before the end of the year bringing more foreclosures into the Fresno and surrounding area market. However, over the next six months, it is also predicted by many industry experts that there will be a smaller amount of foreclosure homes as a result of the California Homeowners Bill of Rights.
The California Homeowners Bill of Rights
The California Homeowners Bill of Rights makes it more difficult for banks to foreclose on homeowners who are in default. As a result, it is also predicted that there may also be a slow down on short sale homes. Demand for foreclosure and quality resale homes will still remain high though. So if you are thinking about purchasing a foreclosure home, you should as soon as possible so that you can take advantage of these favorable buyer conditions. When you find a home, don’t hesitate because there is a lot of competition right now for distressed homes in the Fresno area. Realtors are reporting multiple offer situations on distressed homes with investors and first time home buyers competing for REO’s and short sales.
Reasons to Buy a Fresno Foreclosed Home Now
Here are just some of the reasons why you should buy a Fresno foreclosure property now:
- Foreclosure and pre-foreclosure short sales homes are sold at or below market value.
- You are getting a property with built in equity.
- Foreclosures are a great way to increase your investment portfolio.
- You can expect to receive a high rate of return on your investment.
- Home prices are increasing in the area.
- Interest rates are at historic lows.
- The Fresno rental market is strong with the costs of rents on the rise.
Investing in Fresno foreclosed homes is a smart strategy because property values are so affordable while everything else has gone up such as gas, food and electricity. Buying a Fresno home gives you the opportunity to purchase real estate at or below market value with built in equity. Buying an investment property in the Fresno is a great place to put your money because the market has pretty much bottomed up and prices are appreciating. The demand for good quality rental properties is very high because so many people have lost their homes to foreclosure and have had to rent homes. Rents have gone up between 25%-30% the past few years. The rental market is expected to strengthen over the next few years.
Working with a local Fresno Realtor is also recommended to help you find your bargain home, especially if you are looking for a REO or short sale. Banks list their REO’s with local Realtors. A Realtor can save you time because they are knowledgeable about the inventory in their area. There are also opportunities to purchase homes at foreclosure sales. Keep in mind that you need cash to purchase a home at an auction, and the homes are sold without any warranties or title insurance. You are also responsible for paying off liens and evicting the former owner or tenant at the property.
Whether you decide to purchase a Fresno home at a foreclosure auction or a REO or short sale, with affordable inventory, interest rates at all time lows and rents rising, now is one of the best times to invest in Fresno foreclosed homes. No one knows how much longer these great investment opportunities will last, so you should act now.