Prices of Bank Foreclosures for Sale Rising
November 5th, 2009 by 
jparker
A study conducted on the real estate market showed that prices of bank foreclosures for sale are rising. The trend in the foreclosures market is in sharp contrast with the entire real estate market which is experiencing a rapid drop in prices.
The study pointed out that most foreclosure prices in many states are increasing. The biggest foreclosure price increase is reported in Arizona which saw an average 15.51 percent jump to about $285,257 From November 1 to 3. The November figures were higher compared with the listing average price of $246,944 for the whole month of October.
Some states also experienced price increases in bank foreclosures for sale, albeit at smaller averages. In California, foreclosure home prices jumped by 1.83 percent, 1.45 percent in Nevada and 1.27 percent in Texas.
Meanwhile, foreclosure prices dropped in three states in November compared with the average price in October. Maine posted a price drop of 1.88 percent, 0.72 percent in West Virginia and 0.6 percent in Washington.
According to industry analysts, the overall jump in foreclosure home prices nationwide may have been influenced by supply and demand. They said that when the foreclosure activity slowed down, it resulted to fewer foreclosure properties on the market for sale. Most foreclosure homes are available at discount prices that is why they are considered as good investments.
Investors loaded with cash have been flocking to foreclosure auctions to find good deals. They are not alone in their quest for foreclosure properties as first-time buyers, emboldened by the federal tax credit, also compete for cheap foreclosure houses.
Industry experts said that in some states, multiple offers are being made for foreclosure properties, pushing higher the sale prices.
Meanwhile, experts are not sure what to make of the current trend in the foreclosure market. Many of them said that the rise in foreclosure prices will not last long because of another wave of foreclosure that is expected to flood the market.
They said that many homeowners have been seeing the values of their properties dropped to less than the total amount of their mortgage. And with the growing unemployment rate and uncertainty in the economy, many homeowners have decided to walk away from their properties, leaving them to become bank foreclosures for sale.
