Bronx foreclosures are on a rise which may be good news from an investor’s perspective. It is however crucial to mention that it is not a good news from economic point of view. Although there are enough opportunities for investors to buy foreclosed homes it is important to realize that it may not be a really good thing to do.
Nowadays the real estate market in Bronx is declining, which is a bad for sure. Due to an increase in delayed mortgage payments, people are compelled to lose their home. But banks are not paying attention in selling these homes, which is the reason why other homeowners are also getting affected. But if you still think that there are some chances to earn money by investing in Bronx foreclosures, you need to check the following information.
When it comes to real estate investment, you ought to check average prices for homes in a particular area. Speaking of average prices in Bronx, you will find things in bad shape. Following graph, which is available at Trulia.com, shows the trend for average prices in 2009.
Although you can see that average prices are going in upward direction but these prices are moving on a decreasing rate. It is due to a decrease in average price of a square foot which is about 10.7 %. Additionally, there is a decrease in median price as well and you have to take it into consideration before going for investment.
Following graph will help you understand the way median price have been moving through all these years.
You can see that median prices were moving up in the first quarter of 2007 but they came down after this slight increase. The decline in median price is still there in 2009. Median price for Dec 08 to Feb 09 was somewhere around $376,386 but when compared to the price in last year there was a decrease of $57,614 or 13.3%.
All these points have affected the real estate market along with hitting hard the number of sales which have come down by 13.3%. So, you can have an idea about the real estate market after going through these facts and figures. It is quite evident that real estate market in Bronx is striving to get better but it feels like Bronx foreclosures will keep on decreasing the value of homes in this part of the world.
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Written by Alex Rolim.
