Updated almost 13 years ago on . Most recent reply
#2 Off Topic Contributor
- Real Estate Investor
- the villages, FL
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Now I understand why flippers are having to work
#2 Off Topic Contributor
- Real Estate Investor
- the villages, FL
I saw an article on Phoenix TV yesterday that explains the current market for discounted properties. I know the local Phoenix BP members have been working much harder to find "good " deals and much smaller margins.
2009- Foreclosures sold for 24% less than non foreclosures
2011- Foreclosures sold for 9% less.
2012- Same Price!
Buyers/investors have flooded the market and have driven prices up, just like in the 05-06 era. Here we go again?
I assume Phoenix is just an example of most investable decent cities. Are you finding the same? Rich
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#1 Innovative Strategies Contributor
- Lender
- The Woodlands, TX
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#1 Innovative Strategies Contributor
- Lender
- The Woodlands, TX
Private Equity Funds have raised substantial cash to invest in markets such as Phoenix where the gap between new construction pricing and existing home pricing is large. They are bidding up REOs and trustee sale foreclosures, and paying premiums for large packages - as much as 20% - instead of demanding discounts. I don't believe this will result in overheated markets - I believe markets fell so low that this is merely bringing them back to equilibrium.
- Don Konipol
