Investing in the real estate market of Staten Island is not a bad option. But, if you really want to uplift your profit margin, you have to go for Staten Island foreclosures.
Foreclosure properties are not considered very good form economic point of view, but they surely offer an opportunity to an industrious investor to make big profit. The increase in foreclosures is due to the increase in pending mortgage payments. In fact, it has been found in an industry survey that near 12 percent of Americans were behind their mortgage payments at the end of 2008.
By delving more into the details, it becomes evident that Louisiana, Georgia, Mississippi, Texas and New York are at the top of the list pertaining to mortgages. Situation in Staten Island is not really different from rest of the States. Due to all these things the foreclosure filings in Staten Island are increasing on a consistent pace. It is however recommended to check the existing prices of houses before investing in Staten Island foreclosures.
The increase in the average price for a square foot is the first thing that you will witness after starting your search. In fact, the price during Dec 08 to Feb 09 was $325, which was an increase of 18.2% as compared to the last year. On the other hand, median sales price for the same period was down a bit. Precisely, the decrease in median price from Dec 08 to Feb 09 was around 8.5% compared to last year.
In addition to this, you can also find a decrease in the number of sales in the same period of Dec 08 to Feb 09. To give you a complete idea about the number of sales in recent years, the following graph is being taken from Trulia.com.
This graph indicates that the number of sales was pretty consistent till 2009 but a decline occurred in the first quarter of 2009. Precisely, this decrease in number of sales was up to 38%, which also affected the median price and brought it down to $35,000.
All in all, it can easily be said that real estate market in Staten Island is not really different from rest of the New York State. But, it is essential to mention that prices are pretty high in this area and you may have to pay somewhere around $341,845 for a home through Staten Island foreclosures. So, keep this in mind and always find a better area to cut a better deal.
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Written by Alex Rolim.
