An interesting AP article discussing how banks are dealing with the foreclosure had this nugget in it.
One out of every four homes sold in the United States in the 1st quarter of 2008 was a distressed property.
Think about that when you are trying to market a used home. Or if you are a home seller you are facing an uphill battle if you are not pricing your home as tightly as you can. And if you are in Las Vegas, parts of LA, or Detroit, one out of every two homes are a distressed property.
Nationwide, one out of every four sales between January and March was a distressed sale, and that figure jumped to more than 50 percent in the hardest-hit areas – including Las Vegas, Detroit and distant suburbs of Los Angeles – said Mark Zandi, chief economist at Moody’s Economy.com in West Chester, Pa. The number is as high as 90 percent in some newly built subdivisions, where loose lending standards and speculation ran rampant, real estate agents said. via Philadelphia Inquirer
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I know real estate investors in Detroit and Vegas (2 of the markets you mentioned) who are KILLING IT in these markets due to the down markets. A silver lining for htem I guess. The Detroit guy is snapping up houses, renovating them and flipping them as turn-key cash flow rentals to out of state buyers. The Vegas guys is just doing straight forward distressed sale flips.
This market is tough for many, to be sure. But also a huge opportunity for savvy investors. Everything's on sale!
…jp