An interesting thing has been happening in the housing market. Home prices, as we’ve reported on numerous occasions, have been rising steadily after bottoming in 2012’s first quarter, but a recent FNC report found a corresponding trend – discounts on foreclosures have also been falling during the same period.
The FNC Residential Price Index found that home prices in December hit a two-year high, and increased 5.4 percent in 2012; meanwhile, not only did foreclosures decline as a percentage of total home sales (down from 24.0 percent in December 2011 to 17.8 percent in December 2012), but the discounts needed to sell foreclosures have fallen as well. As FNC’s Foreclosure Market Report found, the average discount on a foreclosure property has fallen from 25 percent in 2009’s first quarter to 12.2 percent in 2012’s fourth quarter.
And that progress can be seen in the local markets. Jeff Morr, the broker/owner of Majestic Properties and chairman of the Master Brokers Forum, said that Miami’s real estate market is active as ever in 2013.
“The market is on fire,” he said. “Properties are selling above their asking price if they are priced right.”
As the year continues, Morr said he expects the market to broaden further, with more areas seeing growth and more banks returning to real estate.
Check out our infographic below for more perspective on FNC’s data, and where the market seems to be heading.