There is a bright side to the fact that California foreclosure homes for sale is on the increase. Not necessarily for the home owner who is being foreclosed upon, but definitely for the wise investor who previously believed he would never be able to own a home in any of the many counties that foreclosures are taking place. California foreclosures are providing extremely affordable housing for many people. For instance in the San Fransico Bay area, where over-inflated house prices prevented first time home buyers no hope of ever owning a home.
It is the perfect time to get in on this real estate market and first time home buyers are taking advantage of this. The values of real estate are dropping dramatically and this has created a buyers market. In the San Fransico Bay area alone the property prices have dropped by a median of 26.4%, this has left home owners with very little equity and this, in addition to the increase in interest rates, leaves home owners with barely room to breathe.
Already people who believed they would never be able to find a reasonably priced home in this area are snatching up California foreclosure homes for sale with increasing rapidity. This is because they are obtaining these homes at massive discounts. Just as an example, a young cable technician paid $180,000 for a bungalow that sold for 2 and ½ times that amount in 2006. In East Oakland and another young couple paid $ 335 000, which is half the price it was sold for two years back, for a split level, four bed-room house in Vallejo. These homes were all sold by the lender who repossessed them after they went into default.
While it is true that California foreclosures for sale do come with caveats. Some need extended maintenance and others are in a not necessarily fantastic neighborhood, but they do come at a discounted value. In some instances prices are so low that the new home owners can be sure they will never end up on the foreclosure heap. It is true that previous prices in these areas were hyper-inflated. But these were the times when all kinds of funny money was playing a role in the market, and anyone who lived or breathed could obtain a mortgage. So anyone who wanted to avoid a risky sub-prime mortgage was kept out of these areas, this no longer applies and these homes are there for the taking.
As soon as a lender repossesses these properties, they become California foreclosure homes for sale. The lender is very eager to unload it, hence the large discounted prices. Unfortunately this process also depresses the price of other homes in the neighborhood, but not as drastically as it might appear. Eventually prices will pick up again and people who have taken advantage of this market at the right time will still have a greatly discounted home that will make them good profits if they decide to sell it once it becomes a sellers market again.
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