Amidst Foreclosures, People Outbid Each Other In The Race To Buy Homes

By Adam Sanderson

Times are indeed tough with recession taking a deep bite into the US economy. Unemployment is at its zenith leading many to falter on mortgage payments. Hence, foreclosures have become common. Now, people are trying to outbid each other in the race to buy houses. Take, for instance, MacDonalds' Glen Burnie house. It was sold within four days of being listed.

Seems strange that bidding and outbidding is happening in a year when the housing bubble has burst. What prompted buyers are the plunging prices of homes and the tax credit of $8,000. Experts agree that these are the first signs that the market may be turning around. According to Baltimore Sun analysis, more homes have changed hands in the first few months of this year than in the same months previous year. In comparison, buyers were refraining from buying homes in most metro areas last year.

Home sales have skyrocketed in areas like Baltimore's Inner Harbor and Howard County's Fulton. In areas where home prices are more moderately priced like Edgewood in Harford County, home sales have increased.

It may be pointed that many of the homeowners who want to palm off their properties are stuck in a bad deal. They owe more on their mortgage than what their homes are worth. Also the median sales prices have plunged in eight of the 10 neighborhoods, according to the Sun analysis. Prices have dropped by as much as 30 per cent. Homeowners who have set a lower price on the homes are now getting offers.

Pat Hiban of the Pat Hiban Real Estate Group says that many homeowners are actually pleased to see homes in the neighborhood being sold. A reality staring in the face of the homeowners is that buyers are competing for low-priced homes while the high-end condominiums are languishing. The winners in the deal are the investors who are paying in cash. Another stark reality is that there are many homeowners who are underwater. Their home values have crashed to an abysmally low level and what they owe to the bank is much more than what their homes are worth. About 25 per cent homes in Baltimore have a negative equity. Take for instance, the home of Jason and Christi Stevenson. They had put a price tag of $325,000 but is now selling the home for a price of $246,000. This is $49,000 less than what the couple had bought the house for.

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About The Author
Adam Sanderson , has been working on foreclosurerepos.com studying the foreclosures market, helping buyers on the finer points of foreclosure homes for sale. Try to visit foreclosurerepos.com and begin your foreclosures by state search.