The See Saw Of Foreclosure Sales In May

July 1st, 2008

The see saw of foreclosure sales is causing it to rise in Battle Creek by 13% while on the national scene it goes down to an increase of only 2% in May 2008.

However the increase in sales is not without a price. Most of these are as a result of agreements reached between lenders and borrowers and not a spontaneous movement in the market. It can be termed as bargain-based. Nevertheless whatever the origins – it is good news for the market that has been wobbly for the past two years. Local real estate brokers welcomed the news. The president of Battle Creek Association of Realtors, Matt Davis said, “We’re positive on the future, and we hope we’re on the bottom bouncing back up.”

In May 118 houses were sold in comparison to 104 in May of 2007. Davis pointed to this as indicative of the future. The winter figures had been cold and bleak with long nights of cold and snow. But spring has broken the thaw and sales are blooming, quipped David.

Looking at the year-by-year number realtor Joy Brown commented that although sales have picked up the houses are fetching a much lower price – going down below $20,000. The sales of low-end house have doubled. In 2007 there were 21 sales but this year already 139 units have been sold. Most of these are from the foreclosure category of houses. One person had actually bought a foreclosed house with a credit card – she informed.

There was much activity around the sale of the house of Duane Rich. Brown of Prudential Preferred Realtors was poring over paper work regarding the foreclosure listing. It was posted for $179,900. It will be on the market for 75 days before the actual sale. That is the usual time houses within this price bracket are taking to sell this year, says Brown juggling his figures. Brown shows that counting by year to date, the sales figures are down from 758 in 2007 to 665 this year.

Brenda McPherson, a realtor with Remax Perrett Associates Inc is seeing good signs since she placed two units in the market in May and within a week was able to dispose of them. This seesaw happens in cyclical order. Buyers and sellers market cannot exist at the same point of time. The seller’s side right now is down. The sellers must learn how to trim up the appearances and amenities of the units to attract buyers.