Lisa Simpson
Apr 8,2009
In: repossessed houses

Basic Statistics about Repossessed Homes in California

There have been numerous repossessed homes in California that soon the market will be flooded with these distressed properties and will lead to further decline in already prevailing lower prices in real estate market.

According to a recent survey conducted in the region, almost fifty percent of the homes sold in the area in the month of August, 2008 had been repossessed. It resulted into 34% of decline in prices over the year 2007 to a median of $330,000. The trend is expected to continue in future too because of the fact that foreclosures activity is till on high while the credit is tight. Additionally, the current turmoil in the economic situation of the country may make it harder for the buyers to obtain credits and thus, the prices may drop down further!

This increase in the sales of repossessed homes in California has brought portentous implications for home prices in the region. It is due to the fact that the financial institutions which have taken over these properties are willing to sell out these properties at earliest so as to recover their money as much as possible.

Though few homeowners have been able to sell their homes for less than the actual amount of their mortgage amount; but most of the time, banks sell foreclosed homes at a considerable amount of loss in their effort to clear off their speedily growing inventory.

Numerous potential buyers in the region have responded to this trend of repossessed homes in California and increase of up to 9.1% has been in noticed in the region.

According to a real estate analyst in California, about 12,800 homes were taken back by banks and other financial institutions. The number is far more than they can manage to sell! So, one can easily understand the current situation of repossessed homes in California.

An economist predicts that a median price for repo homes in California in certain parts will be about $250,000; this is the level that has not been since 2002.

The current repossessed homes in California no doubt are the matter of concern with the constant rise in the number of repossessed homes in the region. But it equally holds true that investment in repossessed homes in California these days makes a lot of sense. It is due to the fact that by doing so an investor can save up to 10 to 15 percent on the current market price of the property. So, a nice opportunity for the investors but definitely a very sad situation for the home owners caught into the grip of foreclosures.

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