night sky. Certain types of properties, certain price ranges will be hot for a few months and then fade. Some of that is dictated by prevailing loan programs and seller incentives.
In my market place, just a few months ago, any property priced under $150,000, would immediately receive multiple all cash offers. In that price range at least it seemed like the heady days of 2005-2006. Bidding wars and buyers falling out of trees. That has quietly faded probably because many buyers have spent their cash and also the inventory in this price category is drastically reduced from what it was. Investors who bought most of these seem to be rehabbing them and entering them into the rental pool – which is quite competitive in its’ own right.
Currently the best deals are starting to be seen in the higher end up to and including the luxury homes. There are some truly stunning deals out there. Some of the homes have been reduced as much as 50%. While you may not be in the market for a luxury property the near luxury properties in the $700, 000- one million dollar range are also seeing dramatic price reductions.
The Banks have been slow to foreclose on these larger properties but there are foreclosures and more coming. Most industry insiders are reporting that the next two years will see a much larger percentage of luxury real estate and commercial real estate go on the market at very competitive prices. The number of lower priced homes will slow and the inventory start to dwindle. In my market place we are seeing the under $250,000 homes actually go up slightly in value.