The flood of foreclosed homes won't ebb
Homebuyers in search of bargains who are willing to do some remodeling have plenty to choose from as lenders try to unload a vast inventory of foreclosed homes.
In the first three months of the year, bank-owned properties (and properties that are in some stage of foreclosure) sold for about 27 percent below the average sales prices of properties not in foreclosure, according to RealtyTrac.
Nearly one in three homes sold nationwide during the first half of this year was a distressed property, says Lawrence Yun, chief economist for the National Association of Realtors.
The trend is expected to continue at least through the rest of the year.
"The number of distressed mortgages remains very elevated," Yun says. "One can comfortably say distressed properties will remain available to buyers (with comparable prices) through the remainder of this year and into next year."
Before you grab one of these tempting deals, be aware that most distressed homes require some upfront remodeling costs, he says.