With thousands of people facing mortgage issues, the rate of Stockton foreclosures is increasing day by day. There was a time when the real estate market of Stockton was considered to be a good option for real estate investors but foreclosures have affected this market in a big way.
It is however essential to mention that you can always invest in foreclosures in this part of the world, but you need to check few market trends before doing so. The average listing price is important to be considered and following graph from Trulia.com will highlight the market trend for average price in recent months.
This graph makes it pretty clear that average price in Stockton was in good shape until Feb 18 when price was at $200K. After this point, there was a decrease in average price and price came down to $192K on Fe 25, 2009. Though there was some improvement in price after this point but the price was still close to $192K mark.
The decrease in average price is also coupled with the decrease in average price per square foot. The average price for a square foot in Stockton was $87, which was actually a decrease of 40.4 % as compared to the same period in the last year. These estimations were based on the sales of 2,755 homes.
What it implies is that average price and the value of homes is going down in this area and one of the reasons behind the devaluation of homes is Stockton foreclosures. But before investing in foreclosures you must also consider the median price along with the number of sales.
Following graphs are taken from Trulia.com to help you understand the market trend for the median price and number of sales.
You can see that there was an overwhelming increase in median price in 2006 but after that things were not pretty encouraging for investors. The median price from Dec 08 to Feb 09 was $126,000, which showed a decrease in the median price as compared to the same period in last year. This decrease in price was around 45.9%. It is however crucial to mention that with the decrease in median price there was an increase in home sales.
The bottom line is that though real estate market of Stockton is not in a really good situation right now but investing in Stockton foreclosures may be a good option as there is an increase in number of sales. But before finally committing to the idea of investing you must conduct a through research.
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Written by Alex Rolim.
