Foreclosures in Town?
Posted by CityBlogIA on May 28th, 2007
Can anyone speak to the issue of foreclosures in Des Moines, Iowa? Foreclosures are up around the country due to the sub-prime lending practices. Is there any foreclosure impact on real estate in Des Moines?
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I’m starting to feel like the ‘lone blogger’ here on city blog in des moines! Anyway, on the issue of foreclosures.
Foreclosures are up nationwide, and Iowa is within the top ten of states with large numbers of foreclosures. From a personal standpoint, I am now listing foreclosures that include nearly new construction and some really nice homes, as well as the older ‘fixer uppers.’
In dealing with foreclosures, I have also dealt with some of the former owners, and heard some very sad stories. The sub-prime market allowed many people the privilige of home ownership, but the adjustable rates and high interest came back to haunt many of these folks.
In the short term, as we see credit tighten and many people forced out of their homes due to foreclosures, I expect to see the demand for rental property rise considerably. This is a good time for investors and buyers! Sellers are more willing to make concessions and negotiate.
Having said that, there are still plenty of buyers out there- especially in the Des Moines market- so sellers need not be skittish. It’s not as hot as it was two years ago, but it is still a good market to both buy and sell.
A final word about foreclosures- they can be tricky at times. A bank is not like a neighbor down the street selling his property. They are impersonal, sometimes demand more for the property than the market will bear, and closings may take longer than the norm. You will probably want to counsel with a good agent that handles foreclosures before venturing into this market.
I would be happy to refer you to four or five others (in addition to myself, of course!) that can give some pretty good advice.
Rex What you stated Oct 4,2007, is now even more of a fact. The demand for investment rentals has increased in just this short amount of time. For those investors that can purchase buy and holds such as, single family home rentals will reap the benefits in the future.