Orlando Real Estate News

Bidding Wars on Foreclosures Indicate Recovery

Mid priced homes are still the most popular, and even though prices keep falling some buyers are seeing stiff competition when trying to purchase a foreclosure.

It is a very good sign our housing economy is recovering when we see bidding wars in a few parts of the U.S. as buyers compete with investors for the same foreclosures. Real Estate brokers say they are now getting multiple offers on certain homes.

Across the country the amount of unsold homes still swamps the demand from buyers. House prices have continued to fall and lenders are now stepping up and taking action on delinquent borrowers since the slowing of foreclosures in late 2008.

This action is still confined to certain markets like parts of California, Arizona and the Washington, D.C., and Minneapolis-St. Paul metro areas.

South Florida and New York City still remain glutted though, but these early signs indicate these areas might be the next with increased competition.

To see changes in the housing markets in 28 major areas go to:

http://online.wsj.com/public/resources/documents/retro-HAGERTY.html

       Many people have found themselves outbid by investors who can pay cash for the homes. Homes in Los Angeles with a price range of $300,000 tend to sell very quickly. Ed Mixon of Altera Real Estate, says the homes in the Santa Ana area and priced around that $300,000 are "blazing hot". Mixon has a client that has been outbid four times when searching for a home for her family of five.

On Wednesday, the Federal Housing Finance Agency reported that home prices nationwide rose a seasonally adjusted 0.7% in February from January, led by gains on the West Coast. When compared with a year earlier, however, home prices were down 6.5%.

Are we on the road for more bidding wars? Right now bidding wars are the exception rather than the rule, but soon the time might come where we see steep competition for some of the foreclosures and short sales fueling this down turn in the housing market.

Bidding wars -- common during the housing boom -- had all but disappeared soon after the market peaked about three years ago. Even now, they remain the exception rather than the rule.

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