Prices of Bank and Government Foreclosure Homes Get Even Lower

The U.S. housing market is reportedly sitting on an inventory equivalent to 10 months of home supplies. This, analysts have stated, has forced home sellers to cut down prices of dwellings, with bank and government foreclosure homes available at an even cheaper rate than before. Analysts also reported that states in the west and southwest were hit the hardest by the need to slash housing unit prices.

Los Angeles bank owned homes are expected to be available at heavily discounted prices in the last weeks of the year as the state of California, along with Nevada, Texas, Arizona, and New Mexico, feel the worst of the inventory issue. Aside from Los Angeles, Fresno is another California metro area that has seen its house prices cut down by a considerable percentage. Among all its listed residential properties, 26% were forced to lower their prices.

In 2009, only 12% of listed residences in Fresno had to lower their prices. For the current year, selling prices were lowered by 12% on average compared with the original asking price, translating to a loss of $24,587 for every property sold at lowered rate. This figure includes all types of residences, including non-foreclosure and foreclosed bank and government foreclosure homes. For the part of foreclosed dwellings, analysts report that the price cut is even more devastating.

In the whole state of California, Los Angeles bank owned homes are not the only ones expected to be sold cheaply this December. In San Francisco, 29% of listed residential properties have lowered their prices by an average of 9% for a loss of $97,850. In Oakland, on the other hand, 25% of listed dwellings were priced lower than their original asking prices, with price cuts averaging 11% which translates to a loss of $48,598.

Overall, Minneapolis had the biggest percentage of listed properties that have lower selling prices than the original listing rate at 44%. Majority of bank foreclosures and government foreclosure homes, and even non-foreclosed residences in Minneapolis, suffered an average price drop of 12% which translates to a $31,500 discount. Omaha was the best performing city among the 50 surveyed, with only 18% of its listed residences having to undergo price reductions.

Original post: http://www.foreclosuredatabank.com/foreclosures-blog/article/2384/bank-government-foreclosure-homes-lower-prices on ForeclosureDataBank.com, your source of house foreclosures.

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