Palos Verdes Foreclosures Discounts Vanishing

(courtesy of Realtor®Mag)

Daily Real Estate News | Tuesday, November 20, 2012

Foreclosure discounts have nearly dried up due to low inventory levels, according to the latest housing reports.

The average discount nationwide for foreclosure properties has fallen to 7.7 percent, according to Zillow research. In some parts of the country, there is no foreclosure discount when compared to other sales.

“The smallest foreclosure discount is found in places where competition for homes is so high, people there are willing to pay the same amount for a foreclosure re-sale that they would for a non-distressed home simply to take advantage of historic affordability,” says Stan Humphries, Zillow’s chief economist. 

[This is especially true in areas such as for Palos Verdes homes where new listing volume is the lowest that it’s been in over 20 years]

The smallest foreclosure discounts can be found in:

• Las Vegas (0%)
• Phoenix (0%)
• Sacramento, Calif. (0.7%)
• Riverside, Calif. (1.8%)
• San Diego (2.4%)
• Miami-Ft. Lauderdale (2.9%)
• Los Angeles (4.2%)
• San Francisco (4.7%)

Meanwhile, the places with the largest foreclosure discounts are:

• Pittsburgh, Pa. (27.8%)
• Cleveland (25.8%)
• Cincinnati (20.2%)
• Baltimore (20%)
• New York City (15.5%)

Source: “Low Inventory Wipes Out Foreclosure Discount,” Examiner.com (Nov. 18, 2012)

+George Fotion