During the recent recession, hundreds upon thousands of people in Michigan and across the nation watched as housing prices plummeted. With people foreclosing on houses left and right it seemed that it was going to be a buyer’s market for quite some time.
But now, with the rate of new foreclosures slowing, mortgage rates falling, and home sales perking up, it seems now that these once in a lifetime bargains could be disappearing faster than expected.
Real estate experts point out that homes still at the low end of the spectrum are likely to see an increase in bids which could drive up the price significantly. This could be a concern for some buyers because this could create issues for real estate transactions.
Fewer new foreclosures, means fewer unsold homes on the market, say some experts. This has led to a 17 percent increase in the median price for a new home compared to last year. For existing home, the median price is up by nearly 9.5 percent.
Since people are less concerned about short sales, it is important for sellers to remember that speaking with a real estate attorney may help them to gauge what is a good deal or not. This also goes for buyers who may feel that negotiations are being driven by greed instead of actual property value. Speaking with a real estate attorney can help make sure that a buyer is not being pressured into a deal they might not want to take.
Source: NBC News Economy Watch, “Foreclosure slowdown pushing home prices higher,” John W. Schoen, Oct. 11, 2012