99205 – Number of Foreclosures Remains High
Although Spokane home sales have increased in volume when compared to last year, the number of foreclosure properties still remains high in certain areas.
The percentage of foreclosure sales in the Spokane area (Spokane
MLS) in 2013 (Year-to-Date as of publication of this article) is
approximately 12.4% compared to 19% for the Shadle area (99205 zip
Overall, strong buyer demand has resulted in an increase in the number of homes sold in the Spokane area by 21% (Year-over-Year comparison for 2012 vs 2013). Additionally, this has led to an increase in the sales price of the average home during this time period of 4.1%.Click here to see the change in home values for zip codes in the Spokane, WA area.
Where can buyers and investors find opportunities in today’s market?
With home values rising as well as interest rates, many buyers are rushing into the market to purchase their primary residence. This is a good first step. Don’t stop there…
In 2013 (YTD) foreclosed properties in the Shadle/99205 zip code sold for 41% below the price of the average traditional home sold by owners. ($128,721: Average Sales price of non-foreclosed homes vs $75,833 for foreclosed homes.
Now is the perfect time to “buy and hold” properties for long-tern income. When you can purchase homes at a 30-40 percent discount, make minor repairs and turn the property into a rental, you are in good shape. This is particularly the case due to rising interest rates. As rates rise, the number of qualified buyers for any price range contracts.
Anytime a market shift, both buyers and sellers tend to freeze. We recommend that you speak with a professional real estate adviser to learn about opportunities in your specific market.