This is a phrase I never thought that I would read about housing, buying in bulk.

But with Detroit is a cataclysmic housing free-fall that is now how the banks are selling their foreclosed upon homes. Not one at a time but in bulk often at prices in the twenty thousand range. So when you read that the Detroit’s housing sales are up dramatically, do not get too excited.

What you are seeing is the vultures swooping in and buying up the inventory at extreme bargain basement prices. My question is with the declining economy is whether there will ever be enough demand for the housing that is there presently or if the homes will be stripped for parts like in Buffalo?

Or the Drive Thru Realtors opening up? I will take a dozen ranches and 4 two stories. Please hold the detached garages? Bulk real estate, what a concept.

Sales were up dramatically in Detroit in February, rising 49% from a year before, and realty watchers say foreclosure properties played a key role in the increase.

Some see significant risk to investors who could get low-end properties without being familiar with pitfalls of the market. “Real estate is not a commodity. You have to know what you are buying,” said Mark Nagy, a broker and consultant for RE Investments Inc. in Southfield. “What typically ends up in bulk sales is stuff that has sat on the market for more than six months.”

Banks see Detroit as a sore spot, Nagy said, because they cannot move the properties and there are so many. “Bulk buying will become more commonplace by the end of the summer,” Nagy said. “Right now, so many properties in Detroit are like a hot potato. Whoever ends up with it will be crushed.” via the Detroit Free Press.

Related posts:

1. California Sales Up, Prices Down, 47% of Sales Foreclosures
2. Buy a House for Only 1 Dollar - Only in Detroit Baby
3. Real Estate Investors Driving Market?
4. Is There Hope For Housing Sales in the Numbers?
5. Pulte Homes Says New Home Sales Will Increase When Foreclosures Slow Down