Top States for Foreclosed Condo and Townhomes
Five states in particular saw higher that average foreclosure rates in this sector. Hawaii (26.9 percent), Florida (14.0
Foreclosure activity remains high across the country. According to BargainNetwork.com, there were over 131,896 foreclosure filings in the U.S. in the month of June. That averages out to one filing for every 877 households. While the majority of the filings involved single family homes, approximately 7.2 percent of those total filings involved townhomes and condos.
Five states in particular saw higher that average foreclosure rates in this sector. Hawaii (26.9 percent), Florida (14.0 percent), California (10.9 percent), Massachusetts (10.7 percent) and Illinois (8.3 oercent) all experienced higher percentage of foreclosure activity involving townhome and condominium units during the month of June.
Condominiums and townhomes remain a popular choice among first-time buyers and empty-nesters. In several urban markets across the country, single-family home prices have become less affordable, fueling the interest in condos and townhouses. Baby-boomers and echo-boomers drawn to the idea of downsizing, or to rediscovering the convenience of living in revitalized downtown centers, are expected to continue fueling the demand for more units.
It is likely that the increase in available units, resulting from the higher foreclosure rates in this sector will present potential buyers with an opportunity to find the home of their dreams at an affordable price.
The notably higher than average foreclosure activity in these states presents potential buyers interested in condo/townhome units with additional opportunities.
Total Foreclosure Count: 291
Total Condo/Townhome Foreclosure Count: 78
Percentage of the Total: 26.9 percent
While Hawaii has a relatively low number of foreclosed properties compared to more populous states such as California, the percentage ndicates that there may be some softness in the condo and townhouse market that investors and soon to be retirees are sure to take note of.
Total Foreclosure Count: 24,065
Total Condo/Townhome Foreclosure Count: 3,367
Percentage of the Total: 14.0 percent
There's no question that the most recent real estate boom rocketed the Florida market to new heights. Unfortunately, as is the case in Florida, what comes up must go down. This doesnt mean that anyone should count Florida out. The state still boasts a strong economy, steady job growth and a great location, but an overinflated market for investment properties may present an opportunity for those looking to buy now.
Total Foreclosure Count: 28,482
Total Condo/Townhome Foreclosure Count: 3,099
Percentage of the Total: 10.9 percent
Although struggling with some of the heaviest foreclosure activity to date, California has historically proven to be a market in which property values have consistently appreciated. Data from the California Association of Realtors shows that the annual average sales price for an existing single family home over the past 37 years has risen a solid 7.92 percent per year, so these properties will most likely be snapped up quickly by opportunistic buyers.
Total Foreclosure Count: 509
Total Condo/Townhome Foreclosure Count: 55
Percentage of the Total: 10.7 percent
Recent drops in supply levels have fueled the speculation by many that the Massachusetts real estate market is coming more in "balance" and poised to rebound, so the few foreclosed properties in this state are likely not to be available for long. In fact, the Massachusetts Association of Realtors this month reported that the condo/townhome sector experienced a significant drop in inventory supply levels, not seen since August 2005.
Total Foreclosure Count: 7,372
Total Condo/Townhome Foreclosure Count: 609
Percentage of the Total: 8.3 percent
The real estate market and economy in this state continues to grow at a steady rate. Interested buyers are currently enjoying a large selection of properties and lower interest rates than last year.