Foreclosure Bargains – A Great Option

Who bought houses ten years ago would still get profits if they sold them now. Although decreases in foreclosure prices were skyrocketing in the U.S. last year, the trend will continue this year too. At least that is what this industry’s experts expect.

There are people who also estimate price reductions of an additional 30% compared to those recorded in 2009. This is the case of an international retail – brokerage firm president. He thinks it will be around 30 percent to reach the maximum decreases.

So reductions will continue in 2010 pretty much, he believes. There are slightly less pessimistic analysts, who believe as well that foreclosure prices will fall, but not in so large percentages, according to media. They estimate that the average price decline this year will be about 11%, say representatives of a financial consulting company.

Quite close to this level American publications’ forecasts fall. Media estimates still eight percent of the foreclosures price drop on average, greater reductions being expected in Arizona, California, Florida, and Nevada.

Agents are more optimistic. Chief economists of association estate agencies in the U.S. provide even a price increase for 2010. They estimate increases over 3% this year. Given the current situation, mortgage interest rates may increase, but compensating factors will be regular buyers of loans, without mortgage, they say. Despite the rather pessimistic estimates, one thing remains certain: who bought houses ten years ago would still get profits if they sold them in 2010.

That is because in the last decade, that of 1999 to 2009 the average house or foreclosure price growth was over 25% being considered including decreases in economic recession of recent years. Moreover, throughout the last decade procurement arrangements have changed too. Persons interested in a house or foreclosure rather turned to the virtual environment, seeking information on specialized sites.

Virtual information is very helpful. In addition, profile portal owners came to help those interested in foreclosures, through complete programs, according to media. They have adapted their pages with real estate or foreclosure ads, providing all the details of the property, its advantages, and disadvantages, and many photographs of the property given. According to different sites, this led to better and more accurate information to interested citizens.

Buyers’ profile has also changed in terms of new methods of documentation. For example, a smaller percentage of married people purchase homes or foreclosures currently, compared to a decade ago. Of these, a decade ago nearly 70%, bought houses, while today this figure has decreased by 10% "say representatives of associations of estate agencies in the U.S.

Prices evolution has to be monitored as well in the case of foreclosures especially. United States have been at the forefront of countries that have suffered from international economic and foreclosure crisis. Thus, U.S. prices have already reduced for nearly three years, and in early 2009, they have dropped on average by an annualized rate of 20%, according to SP and Case-Shiller index. Towards the end of last year, however signs of the market seemed even better.

Original: Foreclosure Bargains