Foreclosures at 14-year low

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Foreclosures have continued their decline to a 14-year low. Arkansas foreclosures are down 23% from Q3 2018. Two points: (1) the Arkansas numbers may be skewed a bit because of a temporary pause due to flooding; and (2) this does not even vaguely resemble the run-up to the 2008 recession during which foreclosures were at all-time highs, cures were at all-time lows, and lending was notoriously loose. Attom Data report

Interesting. Thanks for sharing.

Opportunities are slim in all real estate markets. But... "there's never a market bad enough to prevent a good deal, nor a market good enough to prevent a bad one."

I'm liking the $300k-$450k segment for a flipping strategy. The affordable housing shortage and low interest rates are pushing homebuyers into that price range.

In CRE, I'm LOVING net lease properties in infill locations. There's very little maintenance, and the long-term upside is tremendous for good locations. Plus, it seems like inflation should be low and stable for the foreseeable future.

@Mark Rogers

What do you think contributes to such a low foreclosure rate in Arkansas as opposed to other states? I know in Jonesboro the cost of living is relatively low, and there is an abundance of jobs in Northeast Arkansas.

@Matthew Reid    The total number of foreclosures is low in Arkansas, but when you look at a per unit rate, it's pretty high, ranking 41st, with 1st being the lowest rate and 50 being the highest rate.  Foreclosures in NEA are much lower than in Central Arkansas, so your take probably helps to explain that gap.

@John Wijtenburg I completely agree. We'll pretty much always be in the market, and I'm actually pretty excited that we've managed to get started and thrive in what might be the toughest foreclosure market that we're likely to see for many years. The comparable price range in our market is lower than in yours, but I very much like the middle third of our market. On CRE, I heard an interesting podcast the other day that echoed your take, with a CRE guy referring to commercial retail as a "damaged asset class" with increased opportunities.

In my experience in Arkansas in the last couple of years. I invest in buy and hold properties, The opportunity that I am looking for are not there. The financial institutions are rehabbing them enough to get a better price, and that takes me out of the long term investment opportunity. 

Out of state investors and flippers are dominating the markets.  That would scare me to death. it is real easy to look at a property on line that is a "Great Deal" isn't always great. you can totally miss a market by a town away, a city block and unknown circumstance. have to pay about 10 grand more for a 40k property. 

2. I have extra holding costs and extra expense to finish and correct the cobble up rehab that was done.  

3. lower returns on investments. Single digit returns don't excite me.  1 mistake and you have lost your A** 

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