For today’s Foreclosure Friday, I wanted to focus on Arcadia’s REO activity. Since I was out of town at a real estate convention, I was not able to go out and take photos or video of some of the available homes so dry charts it is again! But, you guys know my motto – knowledge is power! Let’s take a look at some numbers and see if we can make some foreclosure predictions for Arcadia’s real estate market.
READ MORE: Steps of a foreclosure process
As of today, there are 4 single family homes listed in the Multiple Listing Service as bank owned. There’s also one foreclosure condo in a senior development for sale. You can find the list and particulars of these homes at the bottom of this page.
Arcadia Foreclosure Outcomes
Overall, not much inventory available for foreclosure hunters.
Let’s take a look at some historical data. Below is a chart showing foreclosure filings by month going back to last year. The green line shows how many home owners are receiving Notices of Default (NOD) – the first step in the foreclosure process. The blue line shows the home owners towards the end of the process when they receive a Notice of Trustee Sale (NOTS).
As you can see, there are a lot more NODs than NOTS. This most likely reflects the fact that the banks are taking a very long time to foreclose – see Time to Foreclose chart below. Take a look at May of 2009 for both charts and you’ll see the highest number of Notices of Sale corresponded with the lowest # of days to foreclose.
Also, we’re seeing a lot more home owners trying to negotiate a short sale and prevent foreclosure which eats into the NOTS number.
Arcadia – Time to Foreclose
The next chart that I wanted to share with you shows the actual outcomes of Arcadia foreclosures. Quite a few of the Trustee Sales dates are cancelled each month. This is a trend we see across San Gabriel Valley. The auction dates are shooting targets. Most get rescheduled multiple times. However, we do see that investors (yellow line) are picking up a few of these homes as well. Of course, they take on the responsibility of paying off all lien holders and clearing the ownership title.
The winning bids on the other hand are pretty close, if not at, published bids. I know that there’s a lot of data overlapping on the chart below, but it gives you a nice visual that shows these homes whether purchased by banks or investors, sell pretty close to asking price.
For our home buyers that are looking to get a deal purchasing a foreclosure property, the Multiple Listing Service clearly shows that buyers need to be prepared to pay over asking price in Arcadia California. Each bank owned home that sold in Arcadia since September 1, 2009, sold over asking – on average 9% over asking!
So… does that mean that there are no foreclosure deals? NO! If you’re fast enough and smart enough – in other words prepared, you will be able to pick up a foreclosure home at a good price – usually lower than the regular home sales. You just need to understand that the lenders price these homes to sell – usually under market. Home buyers understand that they need to come in with a strong offer to avoid a multiple offer situation and bid over asking.
Even though these homes are bought over asking price, the average price per square foot for same homes was only $330. Compare that to the average price per square foot of $401 for regular home sales for the same price period. That’s quite a deal in my book!
Interested in seeing the same statistics for your home town? Let me know and we’ll dedicate one of the Foreclosure Fridays to you and your town!
Arcadia Foreclosure Homes for Sale offered on the Multiple Listing Service:[idx-listings linkid=”67333″ count=”1000″]
IRINA NETCHAEV & ASSOCIATES
Pasadena Views Real Estate Team