BiggerPockets

Prices of Properties at Bank Home Auctions Dropped to Historic Lows

Wednesday, December 07

Several big cities in the U.S. posted their lowest housing prices last year, with properties offered at bank home auctions and sold directly to buyers registering price ranges reminiscent of pre-foreclosure crisis rates. In addition, areas that did relatively well during the worst of the housing market debacle are getting dragged into the industry crisis that analysts are saying might be in for a double dip.

Prices at Fayetteville home auctions and in other areas of North Carolina, particularly Charlotte, dipped considerably last year. Based on the recently released Case-Shiller Index, it is not only Charlotte that suffered from a dip in housing prices, but also areas like Detroit, Chicago, Portland, Tampa, Seattle, Miami, Atlanta, and Las Vegas. These metro areas reportedly experienced the biggest drop in housing unit prices since 2006.

The recent drop in the prices of North Carolina home auctions and other big cities in the U.S. might hit the nation's economy even worse than the first onslaught of the foreclosure crisis, some analysts have stated. Prices of dwellings picked up during the first half of 2010, mainly because of the tax credit program.

They then declined in the second half, after the tax credit has expired, and shaken whatever consumer confidence was regained during the first half of last year, analysts stated. If prices of homes continue to decline, including prices of properties at bank home auctions, homeowners and consumers will be highly reluctant to spend, which can cause various economic sectors to also tumble.

Analysts are also concerned that continuous drop in prices will result in the problem going beyond the cheaper market of foreclosure auction listings and will eventually hit the higher end residential market. This will make it even harder for home sellers to unload their properties and if this happened, the market will practically come to a standstill, some analysts have predicted.

Industry experts have also stated that tighter standards in lending and high unemployment rates are not helping. They stated that an improvement in the job market will go a long way towards restoring the confidence of consumers, and by then, it is likely that more people will purchase properties at bank home auctions and non-foreclosed dwellings, and prices will start climbing.

Original Post: Prices of Properties at Bank Home Auctions Dropped to Historic Lows on Foreclosure-Auction.net.

Comments

No comments for this blog post yet!

Post a Comment

Your Name:
Your Email:
	Subscribe to comments?