In the Jacksonville area, 26,537 foreclosure related notices went out in December. This is a 56% increase from the previous December. Nationally, 3-3.5 million homes are expected to enter some phase of foreclosure this year. In Jacksonville, area REO specialist are being told to be ready for a huge increase in the number of properties they are going to getting from the banks.
The power in these numbers is simple; opportunity.The banks will do what they need to do to get rid of these properties. This usually boils down to pricing. The effect of this process is an overall reduction in property values.Understanding that this lowering of prices is temporary and that these prices are not reflective of a true market, prudent investors can pick up some great deals.
Despite the glut of foreclosures, the martket for end user sales is still pretty good. Most homebuyers are unable to participate in the foreclosure bonanza since those opportunities generally require cash buyers. With the $8,000 tax credit and the need for properties that can be financed, the market for resale is better than expected. This is especially true in the 80 -200K price range.
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