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, as Joe Zimmerman, a partner with MKT Realty with @properties, explained.
“The real estate market has turned and is aggressively moving in the right direction,” he said. “Right now, if you are a seller and have a good product that shows well and is priced where the consumer feels it should be priced, you will have multiple offers in a matter of days. There is great confidence in the marketplace right now, and it looks like it’s here to stay.”
Check out our infographic below for more perspective on FNC’s data, and where the market seems to be heading.