Real Estate Blog

Residential and Manufactured Foreclosures Affect Retailers

The huge supplies of residential property and manufactured foreclosures in Modesto, California, not only affect homeowners, but also businesses, particularly those related to the residential property industry. One example is Philips Lighting & Home, which recently announced that it will be moving to another space that is smaller than its current location.

The retailer experienced growth during the housing market boom. However, when the number of Modesto foreclosed homes started increasing and the housing market crisis started peaking, the business suffered along with homeowners and other retailers. According to company officials, the move will help Philips adjust to the slowdown in the housing market. They also revealed that a smaller space will give them higher efficiency and will lower overhead costs.

The company has admitted that it does not need a large warehouse space, particularly now that foreclosed homes in California have reached record levels and most homeowners, who are its primary customers, are facing financial and ownership challenges. Philips will relocate to a southwest space near Granger Avenue. This will decrease the retailer's store space to 9,000 square feet from the 28,000 it used to occupy at McHenry Avenue.

According to real estate analysts, the change demonstrates the impact of increasing number of residential and manufactured foreclosures on businesses that have ties with the housing market in the area. They added that lighting businesses, particularly independent and smaller ones, are starting to shift from having warehouse-full inventories to smaller operations that can provide faster shipping.

The owners of the lighting retailer revealed that some customers initially feared that the business will not last, particularly during the time when supplies started outweighing the sale of foreclosure homes. However, the firm was able to make the correct adjustments that allowed it to stay in business despite a declining customer base. Part of these adjustments is moving to a narrower space and increasing the store's focus on energy efficient offerings.

Although residential and manufactured foreclosures continue to rise in Modesto, Philips has not stopped offering products that it has been selling since its inception, including furniture, outdoor and indoor lighting, home accessories, and home-related gift items. The firm also plans to hold a relocation sale to cut down its current inventory.

Original Post: Residential and Manufactured Foreclosures Affect Retailers on ForeclosureDeals.com.

Office Foreclosures for Sale - Not A Problem in Oklahoma City

For over two years, numerous properties in Oklahoma City, both residential and commercial, have ended up as foreclosures for sale. And with the economy not doing as great as it was supposed to be, office building owners have found themselves bankrupt.

According to the year-end office sales summary of price Edwards & Co, there were literally no investors who made a bad decision, particularly bank foreclosure investments, because they managed to complete deals involving 10 major office space, none of which are listed as foreclosures for sale.

It is indeed amazing, considering that both the commercial and residential real estate markets are overflowing with repossessed buildings and homes. A buyer looking for a fixer upper house to flip will surely not find it difficult. Of course, it is a fact that commercial foreclosures and repo homes investing can be a bit risky and requires caution.

The company managed to match 10 desperate building owners to 10 financially-capable buyers and ended up closing 10 major building sales, which amounted to roughly $85 million at $1 million per square feet.

What is common in the 10 transactions is that the buyers took only very little risk in terms of leasing. Most of the office spaces were already leased and those with a lot of vacant spaces were taken up by the buyer themselves. In addition, the fact that there are actually just a few office buildings for sale was helpful, although there are office foreclosures for sale with excessive vacancies. It is probable the owners are simply patient enough to wait until the vacancies have been leased.

Downtown, the sale of Devon Energy Corp’s headquarters generated a major buzz in the industry, especially since the identity of the user is yet to be divulged. When Devon moves out of the building in 2011, another user is ready to move in. This is certainly great news since a vacant 307, 000 square foot office space is something downtown would not want.

Original Post: Office Foreclosures for Sale - Not A Problem in Oklahoma City on EForeclosureMagazine.com.

Federal Tax Credit Failed to Prevent Full-Year Foreclosure Increase

The U.S. federal tax credit made available to first time homebuyers in the first half of 2010 failed to arrest increases in foreclosure numbers for the full year. In South Carolina, the increase in foreclosure numbers in 2010 was over 30% compared with 2009 levels.

Distressed homes in Greenville and in other areas of the state continued their rise in 2010, with the state recording a 31.4% increase in foreclosure totals last year compared with 2009 levels. The state was ranked 16th among the 50 U.S. states in terms of foreclosure levels last year. A total of 33,063 foreclosure-related filings was posted in the state in 2010, giving the region a 1.6% foreclosure rate for the period.

Only two states in the Southern region of the U.S. recorded a higher total than South Carolina distressed homes and foreclosures, with Florida and Georgia recording bigger ratios in terms of foreclosure per property. The whole country's foreclosure-related filings ranged between 2.8 and 2.9 million last year, demonstrating that the real estate crisis is far from over in the U.S.

According to some analysts, the national total is even worse than it appears, given that the federal tax credit program was in place in the first half of 2010 and foreclosure processing and sales hit a snag in the fourth quarter due to the robo-signing controversy. However, some housing industry experts did offer some hope, stating that the housing industry crisis has already hit bottom and recovery will be starting this year in most U.S. markets, although at a pace that will not be felt by most homeowners.

Analysts added that foreclosed and distressed home listing will increase further this year as around 250,000 foreclosure cases that were halted in the fourth quarter of 2010 will be restarted in 2011. However, optimists have stated that this might mean that the housing market will hit its worst this year and will be on course for a recovery come 2012.

Some analysts also added that the difference between 2009 and 2010 figures might be bigger than they seemed because of the federal tax credit, which inflated housing unit sales in 2009. For South Carolina, analysts are hoping that the worst will be over before 2011 ends.

Original Post: Federal Tax Credit Failed to Prevent Full-Year Foreclosure Increase on DistressedPropertiesSale.com.

Commercial Properties and Housing Foreclosures Surged in Columbus

When compared with the housing market, commercial properties actually perform relatively better in terms of foreclosure rates. In Columbus, Ohio, 2010 saw foreclosure activities rising by over 10% when compared with 2009 levels. Although residential foreclosures remained higher than commercial foreclosures, their combined number still resulted in a year-over-year increase.

The number of properties that fell to Columbus foreclosure auctions and households that received foreclosure-related filings totaled 19,958 in 2010, representing a 13% rise when compared with 2009 figures. The metro area has one property out of 39 units in some stage of foreclosure last year, making the region the 56th metro area with the highest foreclosure rate nationwide out of 206 locations surveyed for the full year report.

Foreclosure auctions in Ohio remained at elevated levels in most key cities in 2010, with Columbus recording the highest rate among key metros in the state. The metropolitan areas of Dayton, Youngstown, Canton, and Cleveland also recorded high foreclosure numbers, just slightly lower than the total posted by Columbus last year, according to full year housing market results.

Both residential and commercial properties in Ohio were hit by huge numbers of foreclosure filings, with the state being just one of the nine regions in the whole U.S. that recorded filings of over 100,000 in the 2010 period. However, statewide foreclosure-related filings did decline by 5% last year compared with 2009 figures.

Despite the 5% decline, most cities of Ohio, Columbus included, posted foreclosure rates that are higher than the national average. The number of units that fell underforeclosed properties auction and the total number of foreclosure-related filings nationwide had a ratio of one out of every 45 properties in 2010, lower than the one out of 39 recorded in Columbus. Meanwhile, areas like Las Vegas and several California and Florida metro areas remained in the top ten in terms of foreclosure rates last year.

Most housing industry experts are predicting that residential and commercial properties foreclosures will rise even higher this year as more properties entered the foreclosure process for the first time in 2010. They added that although some regions recorded a decline last year, levels of foreclosures remained higher than normal period levels and will likely continue to record increasing numbers in 2011.

Original Post: Commercial Properties and Housing Foreclosures Surged in Columbus on Foreclosure-Auction.net.

High Foreclosure Rates Shrink Town Populations

Many small Indiana towns are losing people due to the high foreclosure rates experienced statewide. For instance, Clinton County has been experiencing a decline in population, and walking its street will show you the many homes put up for sale. Abandoned properties are also affecting home values in most neighborhoods, which, in turn, are causing many homeowners and sellers to worry.

And it is not only the foreclosed homes in Indianapolis which are affecting the area’s population, but also the economy. A lot of businesses located in the county square have decided to close down, and only those who have survived the last 10 years are still operating.

Even the industrial area in Frankfort, which used to be bustling, is slowing down due to the lack of customers and available jobs. Of course, when businesses close, it means more jobs lost and eventually more financial problems for a lot of homeowners leading to more foreclosed homes in Indiana.

To make matters worse, the foreclosure rates in the county is showing no signs of declining. In 2010, about 250 homes were put on the foreclosure auction block compared to less than 100 in 2000. Based on the house foreclosures filings, 2011 is on its way of breaking the high record last year.

Another example of how the high foreclosure rates have affected local population is the decline in school attendees. In Frankfort schools, the number of students has dropped from 4, 000 to just 800. It just shows how many individuals and families are moving out of the state.

Advertising sections of high school yearbooks also reflect the local situation. Before, businesses have taken out ad spaces to attract more business, but since most closed and packed up, the yearbooks are noticeably thinner and lighter.

For certain, the story is true for many small towns in other states. Unless the federal government do something about the enduring foreclosure crisis, it is clear that a true housing recovery will not be experienced anytime soon.

Original Post: High Foreclosure Rates Shrink Town Populations on ForeclosureDeals.com.

Inventory of For-Sale Repo Homes Down Slightly in Tennessee

The supply of repo homes and residential properties up for sale in general declined in Tennessee last month compared with year-ago levels. Sales for January 2011, on the other hand, were up from one year ago. Housing industry analysts stated that things are looking up for the state's home market and 2011 will be a strong year for the sector.

Sales of foreclosed homes in Nashville and other residences in the rest of the region, including non-foreclosed houses, totaled 1,101 last month, according to data from the Greater Nashville Association of Realtors. The figure represented a 6.6% increase from January 2010. According to the association, the increase in sales was a good sign for the region's housing industry, given that January was a difficult time to travel because of the heavy snow and very cold weather.

The median price of single family dwellings, in which foreclosed homes in Tennessee are also included, was $165,000. The rate was higher than the $159,000 recorded in the same 2010 month. Meanwhile, inventory of for-sale single family residential properties in the area of Middle Tennessee as of the end of January 2011 was at 12,595, a bit lower than the 13,414 total recorded in January 2010.

According to analysts, the higher number of sold residential properties, such as repo homes, and the declining inventory showed that more buyers are gaining confidence and coming out to the market to buy, and unsold homes are starting to work through their way to the system. They added that it is also possible that the decline in inventory was partly due to sellers pulling their properties out of the market in preparation for the spring house buying season.

Housing experts are predicting a surge in housing sales in the spring and a further decline in the inventory of real estate foreclosures and other unsold houses. Local realtors are optimistic about the spring season as more jobs are created in the region.

Local economists reported that more jobs are being created in the state, mostly by small businesses. With an improving job market and higher sales numbers of repo homes and other residential properties, economists are declaring a strong economic outlook for Tennessee for the rest of the year.

Original Post: Inventory of For-Sale Repo Homes Down Slightly in Tennessee on ForeclosureDeals.com.