This is true… from what I have seen there seems to be alot of activity for these homes that are listed in that 330-350k range based on the location. My read on these are that they are indeed investors looking to find cash flow or break even properties, then to hold them and then sell them down the road. Will these current investors continue to support the new foreclosure inventory that comes on the market? I don’t know but for now it seems they may be able to.
Also one thing that is never discussed are bulk purchases. How many of these bulk purchases will be made in the future? I don’t know nor do I claim to know but I do know that there are investment groups that approach lenders for bulk purchases of many properties at discounted prices. Thus these foreclosure inventories never hit the market.
No I am not trying to say that bulk purchases will support the market either… yet to me, I really don’t see alot of 225k 3/2 homes coming on the market in MM. Could a few spot sales turn up? Yeah perhaps if you want to live right on Flanders or Capricorn or something like that. Also perhaps some total scrapers. Okay that could happen. Yet to think that the majority of 3/2 homes will be at a median price of 225k or 250k… I am not of that opinion at the moment unless something serious interest rate hikes or unemployment happens.
