As summer approaches, some homeowners in Worcester might be contemplating whether it is a good time to put their homes on the market. As previously discussed on this blog, the Worcester real estate market appears to be improving and some sellers are experiencing multiple offers on their available properties. Even though it seems that now may be a good time to get into the market, a particular group of sellers is gradually offering properties from their stores of available homes.
Banks and other lending institutions are gradually releasing foreclosed homes back into the market and it is anticipated that they will do so for at least another year The reasons for the steady release may include the fact that some foreclosures need a lot of maintenance to make them attractive to buyers and that a new state law that requires lenders to investigate the cost-effectiveness of modifying loans instead of foreclosing will have a big impact on lenders’ operations.
The number of foreclosures available in Worcester has markedly decreased since the real estate bubble burst several years ago, with nearly 400 fewer bank owned properties in the community last month than during the housing market crash in 2009. Real estate agents have noticed that not all buyers of foreclosures are investors and that some buyers do actually choose to live in their purchases after closing.
As banks and other lending institutions test the legal and financial conditions impacting the sales of foreclosed homes in Worcester, more such properties will become available to buyers. As it is in the local real estate market’s best interest for foreclosures to be sold at their best prices, the gradual depletion of the foreclosure market in the community should help bolster the overall housing market for everyone.
Source: Telegram News, “Worcester digging out of foreclosure mess, but many homes still in the pipeline,” Lisa Eckelbecker, May 26, 2013