By: Dennis Norman
Today Bloomberg.com reported that, based upon data from RealtyTrac Inc., foreclosures in the US were up 81% last year with a total of 2.3 million foreclosures. According to RealtyTrac Inc this is the largest number of foreclosures they have documented in the four years they have been tracking foreclosures.
RealtyTrac Inc data indicates Nevada has the highest foreclosure rate in 2008 with 7.3% of housing units in some stage of default. Coming in second was Florida with 4.5% of housing units in default. Arizona came in 3rd at 4.49% and California, Colorado, Michigan, Ohio, Georgia, Illinois and New Jersey completed the top 10 list in terms of highest foreclosure rate states.
This type of market creates a real quagmire: On the one hand this historically high foreclosure rate can produce opportunities for you to purchase properties at low prices….on the other hand, this record breaking foreclosure rate also means that the real estate market is still in a state of turmoil and today’s “good deal” may be tomorrows loser for you.
I’m not gloom and doom…in fact I think there are real opportunities out there. I just think you need to be cautious, prudent and do your homework before buying. Make sure you know the market you are buying in. I remember back in 2005, in the height of the real estate boom, friends telling me about the condos and lots they were buying, site unseen, in not markets like Florida with the expectation of making a profit without ever closing on the purchase. That should have been my wake-up call. Don’t miss your wake up call, do your homework, be patient and cautiious…also, if you are not buying property now with the plan of owning it for a few years before reselling it don’t buy it…
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