Yes. In many areas especially in CA, AZ, NV, FL, many of the homes are either short sales or foreclosures.
Here is why. These are the areas that had dramatic double digit and in some places triple digit growth. Other areas had little growth and sustained.
While the market is volatile, it is a great place to live, a great place to have you home and a great place to have a home as an investment make you money IF you buy low and sell high. If you buy during the boom or the bubble you are making a mistake unless it is a "latteral move" meaning selling you home and buying a home same size price etc.
Harold Sharpe - Broker
So Cal Homes Realty
California Department of Real Estate License # 01312992
The "Eastside" of our town seems to be less prone to the scores of foreclosures happening in those other areas though we have had a few in the higher price points $700,000+ which have seen "Short-Sale" issues. Those mega "Option-Arms" where they advertised you could buy a home for $1,000,000 with -0- down and payments based on some slick and sick 1.75% teaser rate!!
However the first bit of legislation will give way to more substantial bills which might delay the sub-prime asteriod's crater when it fully hits home. The latest decent bill pastsed Dec 14 and forgives, up to $2,000,000 and for 3 years, debt forgivness issues on primary residences.
The "Durbin" bill would have the greatest impact but would force the defaulting or troubled homeowner into Chapter 13 (wager earner's bankruptcy) and would give the bankruptcy judge the power not only to modify the loan terms but the AMOUNT of the loan! Kinda like doing a short sale to yourself!! There's going to be "pain" as the homeowner must seek Chapter 13 BK but the end result will be a homeowner who can stay put, not put another "Short-Sale" or "REO" into the mix and get his loan amount reduced to "Market value" and have the terms of the loan, payment, interest rate, changed to suit their work out budget.
This is huge as the "Equity" issue has always been at the heart of the issue. Now you've got protection from debt relief also. The Durbin bill might complete the parlay. The Democrats want to "win" this election and will be pulling out all the stops to help those families in need. The Republicans are using the old "pull'em up by the bootstraps" which was the first bill which might effect 8 families in the country!!
Don't forget, it was big Bill Clinton who brought us all the $500,000 tax free exception. Dole at the time only was going to "dole" out $300,000. Of course, we'll probably get our butts taxed off..,!
There are, of course, some great opportunities out there right now, and with what is happening with the interest rates this could be the best opportunity to buy!
Regardless, can be a great time to buy. Avoid almost all "Short Sales" or "Auctions" and find REO property and resales where an owner is not buried in debt and simply has to sell for whatever reason. Do your due diligence up front and stick to a plan. Dont have a plan? DONT MESS WITH REAL ESTATE!