Today I wanted to share some thoughts with my fellow real estate professionals about why this information is so crucial to our careers! Please read these statistics and then read my comments below to understand why all this is so important... (special offer @ the end of the article)
"RealtyTrac® the leading online marketplace for foreclosure properties, today released its Year-End and Q4 2010 U.S. Foreclosure Sales Report™, which shows that foreclosure homes accounted for nearly 26 percent of all U.S. residential sales during the year, down from 29 percent of all sales in 2009 but up from 23 percent of all sales in 2008. The report also shows that the average sales price of these foreclosure properties was more than 28 percent below the average sales price of properties not in the foreclosure process — up from a 27 percent average discount in 2009 and a 22 percent average discount in 2008.
A total of 831,574 U.S. residential properties either owned by banks or in some stage of foreclosure — default or scheduled for auction — sold to third parties in 2010, a decrease of 31 percent from 2009 and a decrease of nearly 14 percent from 2008. Meanwhile sales volume of non-foreclosure properties in 2010 decreased nearly 19 percent from 2009 and nearly 27 percent from 2008.
A total of 149,303 foreclosure sales were recorded in the fourth quarter, down 22 percent from the previous quarter and down 45 percent from the fourth quarter of 2009 — despite a 21 percent monthly up tick in foreclosure sales volume in December. Mirroring the year-end statistics, foreclosure sales in the fourth quarter accounted for 26 percent of total sales, and foreclosure properties sold for an average sales price that was 28 percent below the average sales price of properties not in foreclosure."
If you just look at this article from a strictly statistical angle you're not going to see the big picture. In fact, it might even seem like the number of foreclosures are declining, but this is so far from the truth. The truth is that the number of homes in foreclosure is only climbing. These statistics only report of the number of foreclosure sales, not the number of homes actually in default. In some areas there as many as 1 in 14 homes in foreclosure, that is staggering!
So let me break down these stats for you very simply: SALES ARE DOWN. Sales are down across the board: new homes, old homes, luxury homes, foreclosed homes, etc.
Now here is something you probably didn't catch. If you read carefully, you will see that foreclosure sales in December actually spiked 21% from the previous month! This is very significant. In fact, we are only going to continue to see increases like this one for the next couple of years.
"Where at Least 1 in 46 Homes are in Foreclosure" Image Courtesy of Realty Trac
This is why this is all so important, because in the next 48 months will see the liquidation of more REO assets than in any time in our nation's history! If you did not get into the REO listing world in 2006-2008 you probably feel a little foolish. If you did not get into the listing side of REO's in 2009-2010, you may feel like you've confirmed that foolish label. If you make the decision to not explore REO Opportunities in 2011 there is just no hope for you.
So if you want to get into the REO business and get your piece of the pie here is a way for you to start getting in on the action. This is quickly becoming one of the most important movements of the Foreclosure Crisis. The situation is not over. There are predicted to be more REO assets liquidated during the next 3 years than in the last 3 decades. LPS and The United States Treasury both agree that the peak of the Foreclosure epidemic will not be seen until LATE 2013!!! The last Quarter of 2013 will be the MIDDLE, TOP, and HIGHEST VOLUME... not the end of the subsiding problem. Please understand that this is going to be a huge part of your marketplace for at least 5 years to come.
To find out more information visit: www.foreclosurefridays.org. Foreclosure Fridays is way for you to learn what it takes the get REO accounts, manage REO listings, work with asset managers, and continue to grow your REO Team. Enter the code: NFI FREE for a free month long trial! You won't regret it!
"RealtyTrac® the leading online marketplace for foreclosure properties, today released its Year-End and Q4 2010 U.S. Foreclosure Sales Report™, which shows that foreclosure homes accounted for nearly 26 percent of all U.S. residential sales during the year, down from 29 percent of all sales in 2009 but up from 23 percent of all sales in 2008. The report also shows that the average sales price of these foreclosure properties was more than 28 percent below the average sales price of properties not in the foreclosure process — up from a 27 percent average discount in 2009 and a 22 percent average discount in 2008.
A total of 831,574 U.S. residential properties either owned by banks or in some stage of foreclosure — default or scheduled for auction — sold to third parties in 2010, a decrease of 31 percent from 2009 and a decrease of nearly 14 percent from 2008. Meanwhile sales volume of non-foreclosure properties in 2010 decreased nearly 19 percent from 2009 and nearly 27 percent from 2008.
A total of 149,303 foreclosure sales were recorded in the fourth quarter, down 22 percent from the previous quarter and down 45 percent from the fourth quarter of 2009 — despite a 21 percent monthly up tick in foreclosure sales volume in December. Mirroring the year-end statistics, foreclosure sales in the fourth quarter accounted for 26 percent of total sales, and foreclosure properties sold for an average sales price that was 28 percent below the average sales price of properties not in foreclosure."
If you just look at this article from a strictly statistical angle you're not going to see the big picture. In fact, it might even seem like the number of foreclosures are declining, but this is so far from the truth. The truth is that the number of homes in foreclosure is only climbing. These statistics only report of the number of foreclosure sales, not the number of homes actually in default. In some areas there as many as 1 in 14 homes in foreclosure, that is staggering!
So let me break down these stats for you very simply: SALES ARE DOWN. Sales are down across the board: new homes, old homes, luxury homes, foreclosed homes, etc.
Now here is something you probably didn't catch. If you read carefully, you will see that foreclosure sales in December actually spiked 21% from the previous month! This is very significant. In fact, we are only going to continue to see increases like this one for the next couple of years.
"Where at Least 1 in 46 Homes are in Foreclosure" Image Courtesy of Realty Trac
This is why this is all so important, because in the next 48 months will see the liquidation of more REO assets than in any time in our nation's history! If you did not get into the REO listing world in 2006-2008 you probably feel a little foolish. If you did not get into the listing side of REO's in 2009-2010, you may feel like you've confirmed that foolish label. If you make the decision to not explore REO Opportunities in 2011 there is just no hope for you.
So if you want to get into the REO business and get your piece of the pie here is a way for you to start getting in on the action. This is quickly becoming one of the most important movements of the Foreclosure Crisis. The situation is not over. There are predicted to be more REO assets liquidated during the next 3 years than in the last 3 decades. LPS and The United States Treasury both agree that the peak of the Foreclosure epidemic will not be seen until LATE 2013!!! The last Quarter of 2013 will be the MIDDLE, TOP, and HIGHEST VOLUME... not the end of the subsiding problem. Please understand that this is going to be a huge part of your marketplace for at least 5 years to come.
To find out more information visit: www.foreclosurefridays.org. Foreclosure Fridays is way for you to learn what it takes the get REO accounts, manage REO listings, work with asset managers, and continue to grow your REO Team. Enter the code: NFI FREE for a free month long trial! You won't regret it!
No comments:
Post a Comment