Antelope Foreclosures Account for Nearly Half of Sales
Purva recently wrote some excellent advice for home sellers in Natomas, and nearby Antelope home sellers. Based on October’s real estate statistics, I would suggest that nearby Antelope sellers also need to seriously consider how competitive their home is compared to the many foreclosures that are on the market.
In October, bank owned foreclosures (also called REOs for “real estate owned”) accounted for fully 47.5% of sales in Antelope (95843). In October of 2006, none of the forty-six homes that sold were REOs. In October of 2007, forty units sold and nineteen of them were REOs (hence 47.5%). As in other areas, foreclosures outsold non-foreclosed properties by almost two to one. Even though they accounted for just under half of sales, REOs constitute just over one quarter (25.7%) of the inventory.
Moreover, Antelope is no exception to the general rule we’ve that the more foreclosures there are in an area, the more prices tend to plummet. The median sale price in Antelope dropped 20.6% in October from the previous year, from $350,750 last year to $278,350 this year. The average sale price dropped 23.6% during this time, from $360,437 last October to $275,350 this October. Average sold price per square foot dropped off somewhat less, since this year’s average home was somewhat smaller. The decline in price per square foot was 18.8%, from $206.44 last year to $167.69 last year.
Currently Antelope has 12.03 months of inventory.
But Aren’t Foreclosed Properties Sold “As-Is?” Why Are They So Popular?
That one’s easy. Looking at what’s currently on the market in Antelope, here’s how the sold prices per square feet break down:
REO’s are listed on average for $163.19 per square foot.
Non-REOs are listed on average for $183.49 per square foot.
On a 1650 square foot home (which is about average), the difference in price works out, rounding off a bit, to $269,000 versus $303,000. $34,000. Ten per cent.
Buyers aren’t stupid. $34,000 buys a lot of paint and carpet.
