The opportunity to buy a home at a distress sale (short sale, REO or foreclosure) for a steep discount has dwindled significantly. It seems the pool of these properties has nearly dried up, leaving bargain shoppers competing with buyer’s who intend to occupy a home (and pay market value).
The reason for this trend is open to speculation. We’ve observed that the demographic of homeowner in our area tends to be more financially stable with a larger equity position in their home compared to other “first time buyer” markets. Because of this, there tends to be less real estate fallout when the market declines.
While the Seal Beach real estate market began it’s decline in 2008, the bulk of distress sales didn’t peak until 2012. The city of Seal Beach experienced 20 sales in 2012 that were either a short sale, REO or foreclosure ranging in price from $520,000 – $955,000.
As home’s in our real estate market continue to appreciate, more and more owner’s are starting to use the word “equity” again in conversations. This may largely be the reason there have only been 3 distress sales so far this year, ranging in price from $606,000 – $750,000. The downward pressure of the market is lifting.
It’s been six years since the market crashed, and people are slowly beginning to exhale. Many owner’s are seeing the demand and making the decision to sell their Seal Beach home they now have equity in. If you are considering the sale of your home, or just curious of the value, visit the local website www.SealBeachHomeValues.com or contact your local Realtor.