Foreclosure discounts are getting smaller as intense competition for homes forces buyers to pay closer to market value, Zillow.com says.
Buyers in Palm Beach, Broward and Miami-Dade counties earned a 2.9 percent discount in September, down from 6.8 percent a year earlier, according to the Seattle-based website.
Nationally, bank-owned discounts fell to 7.7 percent in September from 9.1 a year ago.
South Florida’s peak foreclosure discount was 22.7 percent in August 2008. But during the past year, a lack of homes for sale has frustrated buyers and led to multiple offers and bidding wars.
“The smallest foreclosure discount is found in places where competition for homes is so high, people there are willing to pay the same amount for a foreclosure re-sale that they would for a non-distressed home simply to take advantage of historic affordability,” Zillow Chief Economist Stan Humphries said in a statement.
In Phoenix and Las Vegas, two markets rebounding after getting hammered during the housing crash, there is no discount for buying a foreclosure, Zillow says.
If you’re looking to find the biggest foreclosure bargains, head to Pittsburgh (27.4 percent) and Cleveland (25.8 percent).
Zillow compared the sale prices of bank-owned homes to the estimated sale prices of the same homes had they not been sold through a foreclosure auction.
The author of this article is: Paul Owers
See the original post at: http://www.sun-sentinel.com/business/realestate/house-keys-blog/sfl-foreclosures-bargain-prices-are-declining-20121109,0,6808444.story
At GayRealEstate.com, we keep you updated with all the gay realtor, lesbian realtor, gay realty, gay real estate and general real estate news affecting the LGBT community coast to coast, and in your neighborhood.
Click here for list of gay realtors, lesbian realtors and gay friendly realtors Nationwide.
If you have a real estate story that you’d like to share with us with the gay and lesbian real estate community, please contact us at: manager@gayrealestate.com
