Home Buying in Brownsville>Question Details

onikablue, Other/Just Looking in Brooklyn, NY

If sale prices are decreasing in a particular area and short sales and foreclosures are plentiful, does that mean you should avoid the area?

Asked by onikablue, Brooklyn, NY Sun Jul 21, 2013

Help the community by answering this question:

Answers

9
Most areas are seeing prices increasing and at double digit rates. The amount of homes on the market is decreasing and bank owned homes are at 8 year lows. Short sales have dissapeared in a lot of areas, If you fin an area that has not started to come out of recession, it may be a great opportunity to buy low in order to get some real equity
0 votes Thank Flag Link Mon Jul 22, 2013
Onika,
Great question. The right answer is...."Depends!"
I know, that's a terrible answer and worth absolutely nothing.
As with any real estate purchase, or any investment for that matter, you need to know your PURPOSE for the pruchase.
-
Some buy real estate and expect to sell in 90 days.
Some buy and expect to rent for five years and sell year six.
Some use real estate at a critical element of their wealth building and/or retirement program.
Some folks are seeking shelter.
-
Which one are you?
Now, the information you need is revealed in reports like my "Market In A Minute" for specific comminuties. You can see examples of these reports on my Trulia blog.
http://www.Trulia.com/blog/annetteLawrence

Knowing the trends and absesnce or existance of the key precursers is essential in selecting the real estate that is suitbable for your purposel.
-
Your would be well advised to consult a real estate professional who has access to relevent, accurate, timely, comprehenisve data to create this report for you. Aggregate websites are for entertainment purposes. You need REAL data.

Best of success,
Annette Lawrence, Broker/Associate
Remax Realtec Group
Plam Harbor, FL
727.420.4041
http://RealEstateMadeEZ.us
0 votes Thank Flag Link Mon Jul 22, 2013
If you like the area no reason to avoid it, just do your own diligence beforehand....
0 votes Thank Flag Link Mon Jul 22, 2013
This happens in some markets. No, I wouldn't necessarily avoid this market or any other market. It's all about the numbers in my opinion. If you have te opportunity to buy low enough to make a nice enough profit and be able to sell a non-short sale in a short sale market, why pass on?

I would say that this is not happening as often as it was several years ago. most of the markets with these features have had tons of investors buy and sell which have helped these very markets. At least that's what we've seen here in New York.

If my response was helpful, consider clicking BEST ANSWER!

Javier Meneses
Senior Loan Officer
NMLS #23130
STERLING NATIONAL BANK
310 Crossways Park Drive
Woodbury, NY 11797
jmeneses@snb.com
(516) 606-9648 Cell
(516) 740-4478 Office
(516) 918-5383 Fax
0 votes Thank Flag Link Sun Jul 21, 2013
The place you describe does not exist in the United States;
maybe some foreign country?
0 votes Thank Flag Link Sun Jul 21, 2013
East New York , Brooklyn seems to be one such area. Check it out
Flag Sun Jul 21, 2013
Dear Onikablue,

You are in New York and I am in West Los Angeles, CA. I am going to answer based on my area. In West Los Angeles short sales and foreclosures are the minimum and standard sales are the majority of active listings. Combined with the fact the housing inventory is low. Therefore the is more buyer demand than housing supply. Therefore, housing values have increased. On the other hand, areas with majority of short sales and foreclosures and prices are stable or decreasing. In those areas I would investigate the potential for housing apreciation.
Check:
- Crime Rate in Area
- Check School Ratings
- Walk or Drive area check for abandon buildings, updated properties and new construction in residential/commercial areas.

There are still deals in areas with a gut of short sales and foreclosures but you have to do some homework. The safe bet is to invest in areas with a minium of short sales/reo that have standard sales density and area is seeing appreciation.
BEST OF LUCK!

Gail Mercedes Cole
EXP Realty
310.853.9933
0 votes Thank Flag Link Sun Jul 21, 2013
Dear onikablue:

Not necessarily. You just have to be extra careful that you are getting a good deal (a very good deal!). If I can be of further assistance, please contact me direct. Good luck!

Sincerely,
Mitchell S. Feldman
Associate Broker/ Director of Sales/ e-Pro Realtor
Fillmore Real Estate
Office: (718) 252-2000/ Cell: (917) 805-0783
Email: MitchellSFeldman@aol.com
Web Site: http://www.MitchellFeldman.com and http://www.Fillmore.com
0 votes Thank Flag Link Sun Jul 21, 2013
Good point, I would work with a Realtor to understand when and where the ottom is expected.

Perry
0 votes Thank Flag Link Sun Jul 21, 2013
Not necessarily, you may be able to get a really good deal. Look at other factors: why are there so many short sale, is it because the homes were so over inflated 10 years ago? Some new developments fall into that category. Is there a good infrastructure in the area? How are the school ratings (even if you do not have children, better rated school districts do better for future resale). Is the area around the neighborhood still selling well?
An excellent way to find out about an area is to go on a weekend and talk to current residents and local shop owners.
0 votes Thank Flag Link Sun Jul 21, 2013
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2014 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer