As a Real Estate professional , it’s my job to report to people, and help guide them in the decisions they make with buying or selling a home.
From my personal research, and various sources, it is my firm Belief that we’ll see a large increase in the number of foreclosures in the Circleville & Chillicothe areas over the next 12 months.
The reasoning for the increase is due to 2 separate things.
#1 The tax credit has expired
#2 The foreclosure moratorium has expired
#1 Isn’t a huge issue , the government’s $8500 tax credit to new homebuyers has expired. This does not increase the number of foreclosures on the market , but hurts the rate at which they’re purchased by buyers. Over the past 3 years, we’ve seen a larger portion of the market consist of foreclosures, to the point that for a few months in 08 and 09 , foreclosures accounted for nearly 40% of the sales in the marketplace locally (Normally it’s only 3% to 5%).
The #2 is a huge issue , in October, the president signed a bill that declared a moratorium on foreclosures , and because of this , the number of homes that banks could foreclose on were severely limited.
Now , the foreclosure moratorium expired several months ago, however locally, it takes anywhere from 6 months to well over a year for a bank to actually foreclose on a homeowner who had already defaulted. Putting us in a time period over the next 6 months of when we will most likely see these homes hit the market.]
For buyers, this is good news, as when foreclosures are on the market, prices go down and things become more affordable. For sellers, this isn’t a good thing, as it drives down the value of most homes , as existing owners will need to compete with banks who absolutely must sell.
Tags: chillicothe foreclosures., circleville foreclosures, foreclosure report
