Although it is a fact that real estate market in US is not in a really good condition at the moment but there are lots of opportunities for investors to make some money. In fact the increasing number of foreclosures can be considered as a perfect way to earn some money. But, if you have some interested in Brooklyn foreclosures, you need to take some time before getting to a conclusion about your investment.
First of all it is essential to mention that foreclosures are getting increased in all parts of US. But, there are few parts which are more popular for foreclosures as compared to some others. Following chart will help you to know more about the foreclosures in different parts.
It is not hard to gather after checking this graph that foreclosures in New York are moving in upward directions. Precisely, the number of foreclosures was up until the 4th Q of 2008, though there was a decrease in the 3rd Q. Although the rate of foreclosure was high but it was far less than Miami, Los Angeles and Seattle. Total foreclosures in 4th quarter of 2008 were 83, which was quite low as compared to the 4th quarter of 2007.
This graph is perfect to get a picture of foreclosures taking place in New York. Now, getting back to Brooklyn foreclosures, you will find a rise in number but it really doesn’t mean that you must straight away buy foreclosure homes. You have to consider the median price as it will help you to understand the existing real estate trend.
The median sales price in Brooklyn was $525,000 for Dec 08 to Feb 09. This was actually a decrease in the median sales price up to 12.5%. This estimation was based on the sales of 1,071 homes. To elaborate this entire “median price thing”, it is essential to consider following graph, which is from Trulia.com.
This graph shows an increase in median price from the second quarter of 2003 till 2007. The median price in 2007 was around $620 K. After this particular point, there was a dip in price which became more severe in 2008 and price came down just to touch $500 K mark. This decrease in median price was because of the decrease in number of sales. There was around 21.5% decrease in number of sales during the Dec 08 to Feb 09 as compared to same time in previous year.
So, there is a clear decrease in median price which also creates a clear impact on Brooklyn foreclosures. What it means is that you must never invest in foreclosures or real estate before contemplating on the median price.
Print This Post
Email This Post
HUD Fair Housing Equal Opportunity
