Homebuyers in California who choose to buy foreclosed homes are getting properties at huge discounts when compared to the average price of ordinary sales. These discounts can be as high as 28% according to recent figures released by Realty Trac Inc.
However the number of foreclosures sales has declined in recent months, and this may be due to the higher number than average of cash sales and non-owner occupied sales, as investors have been busy buying up properties that are distressed realising they represent such excellent value for money.
Fewer than 28,000 homes were sold in the state of California last month and although this number is lower than December a seasonal decline is expected and when this figure is adjusted to reflect seasonal trends it shows an increase for the third month in a row. Some 40% of the properties sold were foreclosures and this is a decrease of 3% from January 2010.
Although the numbers of homes being sold are still relatively low, the numbers sold for $1 million or more in 2010 was higher due to certain parts of the economy improving, prompting high-end buyers to go shopping for a bargain. A total of 21% more homes were sold for $1 million or more in 2010 when compared to 2009.
This may be a sign that the financial world is but on the way to recovery since people who buy prestige homes tend to be less dependent on interest rates and job certainty, and are more interested on maintaining their portfolios.