Rising foreclosure numbers are now having a big impact on home appraisers and the property valuations they're making. The Arizona Daily Star featured on article on today's front page reporting that foreclosure are pushing down home's selling prices.
Usually one foreclosure in a neighborhood doesn't have much influence on other property values because they are other comparable sales to measure against. The current real estate market is different; now high foreclosure numbers can't help but impact neighboring property values because these sales are the only comparables around. Fourteen percent of homes sold in Tucson in April were repossessed by lenders. Tucson foreclosure filings in April were up about 40 percent from March, and more then 80 percent from April 2007.
Usually one foreclosure in a neighborhood doesn't have much influence on other property values because they are other comparable sales to measure against. The current real estate market is different; now high foreclosure numbers can't help but impact neighboring property values because these sales are the only comparables around. Fourteen percent of homes sold in Tucson in April were repossessed by lenders. Tucson foreclosure filings in April were up about 40 percent from March, and more then 80 percent from April 2007.
Foreclosures aren't the only thing impacting property values. Some home owners are drastically dropping their prices in order to sell. Many buyers are ready to move if the find a great deal, so the lowest priced homes are selling and lowering neighboring property values. This is not the standard; the majority of home sellers are perfectly willing to hold onto their home until the right deal comes along. But many will be holding onto their homes for a long time if they expect to get the price their hoping for.
1 comment:
This is not the standard; the majority of home sellers are perfectly willing to hold onto their home until the right deal comes along.
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Julie
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