JL's Columbia SC Real Estate Blog: When Foreclosures Help a Community

When Foreclosures Help a Community

Foreclosed homes for sale in Columbia, SC

 Foreclosed Homes for Sale in Columbia, SC

While I am well aware of how strange the title sounds, I have actually noticed one community in Columbia, SC that has actually seemed to benefit from the foreclosure market. This community has always carried a decent amount of foreclosed homes for sale, even when the market is hot. The current market has not really affected the amount of foreclosed homes that are available in this particular community, however, it has created a strange little paradox for the market.

Foreclosed homes for sale in Columbia, SC

  I'm not by any stretch of the imagination saying that foreclosures are a good thing, but the fact of the matter is that they seem to have raised the property values in at least one community. The area in question never really resold all that well, despite being an established community in a great location that's close to shopping, dinning, and the interstate. However, with the words bank owned properties, permanently etched in the hearts and minds of home buyers, ever foreclosure that hits the market seems to get a lot of traffic. As a result, the decent foreclosed homes for sale typically get multiple offers. Then the home sales for higher than the list price and the next home is listed at the new value point.

So why is this community seeing such strange results from the foreclosure market.

1- The media of course. With all the talk about foreclosures and REO's being the best deals on the market, that's where the buyers are headed and that's what they are in search of.

2- Price point. The prices of these homes have always been more affordable than many of the communities in the area. Of course these days price has become more and more important.

3- First time home buyers. It's no secret that these days a lot of the buyers plunging into the market are first time home buyers. The community is in the right price range to take advantage of this.

4- The tax credit. The tax credit has brought quite a few first time home buyers off the fence looking to take advantage of the "free" money and this is good for any community in the right price range for a first time buyer.

5- Location. While it is one of the older communities in the area, it is located in an area of town that has seen a great deal of development. In fact, even in today's economy, the area has continued to grow by leap and bounds. And we all know that nothing attracts a crowd like a crowd.

 While these are just some of the reasons I see being a driving force behind this odd phenomenon, it is happening now regardless of the reason. In the past year 35 homes have closed in the community, and that's more than in years past. There are currently ten more under contract. Six are active at present and there are usually more than that available on the market. Also there has been a decrease in the days on the market for the community. Just another strange circumstance in a very strange market.

 

www.jlboney.com

______________________________________________________________________________________________________

JL Boney, III - Columbia, SC Realtor - Coldwell Banker Residential Real Estate

 I specialize in Columbia, SC real estate and the surrounding areas, including Blythewood, SC, Kershaw County, Fairfield County, and Lexington, SC. If you are in the market to buy or sell a home in Columbia, SC or any of the surrounding areas, I would love the opportunity to speak with to see how I can help. Thanks for reading and feel free to contact me if I can be of service to you.

Office- 803-788-1450     Cell- 803-730-9601     Email- James_Boney@Yahoo.com

My Columbia SC Real Estate Website

My Columbia, SC Real Estate Blog

www.jlboney.com/columbiascrealestateblog.html

 www.activerain.com/blogs/jlboney/rss

Subscribe to JL Boney's Columbia SC Real Estate Blog by Email

 

Comment balloon 18 commentsJL Boney, III • July 27 2009 01:43PM

Comments

JL - Observations like these prove you really know your market.  Many agents wouldn't even notice these trends occurring let alone stop to figure out how it is affecting the community as a whole.  There are certainly a lot of anomalies in every area.  Despite "the economy" and "the market," we have several SELLERs Market communities in Louisville.  This continually shocks buyers. 

Posted by Erik Hitzelberger, Louisville - Middletown Real Estate (RE/MAX Alliance - Louisville REALTOR-Luxury Homes) about 9 years ago
JL...Vefry good points. Getting the homes occupied is also good for the neighborhood
Posted by William Feela, Realtor, Whispering Pines Realty 651-674-5999 No. (WHISPERING PINES REALTY) about 9 years ago

JL:  My own neighborhood has seen a glut of foreclosures.  It took a while for the market to get an appetite for them, but now, you can't keep them on the shelf.

Posted by Chris Ann Cleland, Associate Broker, Bristow, VA (Long and Foster REALTORS®, Gainesville, VA) about 9 years ago

JL --- I agree with Erik above -- I could not have said it better "Observations like these prove you really know your market. Many agents wouldn't even notice these trends occurring let alone stop to figure out how it is affecting the community as a whole."  This is very interesting --- I don't think we have any areas like that in Charleston, but then I don't list and sell - so not out in the market like you sales folks.

Mama Liz's Signature

Posted by Liz Loadholt, Realtor--Broker-in-charge - Trainer--Relocation Director Covering SC (Liz Loadholt- AgentOwned Realty- Covering SC) about 9 years ago

JL - This is indeed a different phenomenon. Anytime a neighborhood can stabilize with homeowners (not investors) a positive change should result. Great insight with a positive twist

Posted by Claude Cross, Charlotte NC Homes For Sale (Homes By Cross, Inc. ) about 9 years ago

JL

Great information. Foreclosures are a fact of life we just need to get them sold.

Good luck and success,

Lou Ludwig

Posted by Lou Ludwig, Designations Earned CRB, CRS, CIPS, GRI, SRES, TRC (Ludwig & Associates) about 9 years ago

JL - we have a couple areas near me that are really being revitalized by the foreclosures.  It is simply amazing.  I have had a great opportunity to watch this happen, having a foreclorsure of my own that sold in April.  The whole street had one after another sold, it was great, and the pride of ownership of the first-time homebuyers is amazing.  Just hope that they save some of those landscaping dollars to pay their own mortgages!  LOL! 

Posted by Suzanne McLaughlin, Sabinske & Associates, Realtor (Sabinske & Associates, Inc. (Albertville, St. Michael)) about 9 years ago

Erik- I try to know my market as well as I possibly can, after all, that's part of my job.

Bill- I can certainly agree with that.

Liz- It's an odd thing, and it's the only community around here I have seen like this.

Chris Ann- I would say that's a good thing.

Claude- Strange but true my friend.

Posted by JL Boney, III, Columbia, SC Real Estate (Coldwell Banker) about 9 years ago

Lou- That doesn't seem to be a problem here.

Suzanne- I'm hoping the same thing, and I am seeing the same in this particular spot.

Posted by JL Boney, III, Columbia, SC Real Estate (Coldwell Banker) about 9 years ago

JL...

You are so right ...everyone wants a foreclosure, even if they had no interest before. I guess that it's a physiological thing.

Posted by Richard Weisser, Richard Weisser Retired Real Estate Professional (Richard Weisser Realty) about 9 years ago

I would hope this might happen to some areas here in New Jersey that the media calls 'distressed' which in the past has meant few takers no matter what the price! 

Posted by Laura Giannotta, Your Realtor Down the Shore! (Keller Williams Realty - Atlantic Shore ) about 9 years ago

Richard- It's just been forced into their brains by the constant talk about foreclosed homes across the nation and what a deal they can be.

Laura- Give it time and it's bound to happen before it's all over with.

Posted by JL Boney, III, Columbia, SC Real Estate (Coldwell Banker) about 9 years ago

Good observation of your market JL. It used to be that "Bank Owned" seemed to have a stigma to it but not anymore. Everybody wants them.

Posted by Cameron Wilson, The Short Guy - Murrieta,Temecula,Menifee Californ (Labrum Real Estate) about 9 years ago

Cameron- The tables have certainly turned where that is concerned my friend.

Posted by JL Boney, III, Columbia, SC Real Estate (Coldwell Banker) about 9 years ago

A number of areas in our county have been hit tremendously by foreclosure.  In fact, the county in which I reside and primarily work is one of the hardest hit in the state.  However, there have been tremendous turnarounds in some of the cities and neighborhoods due to the revitalization of new buyers and pride in ownership of this new blood.  It can be a great asset to a neighborhood to get the empty and neglected homes back into the black!!

Posted by Don Sabinske, Sabinske & Associates Inc. (Don Sabinske, Sabinske & Associates Inc.) about 9 years ago

There sure have been a lot of foreclosures.  Good to see that people are able to get into their first houses now at a price they can afford.  I just hope the affordability continues.  With all the money the government is printing, there is sure to be inflation in our future. 

Posted by Brian Griffis (Realty Choice) about 9 years ago

There sure have been a lot of foreclosures.  Good to see that people are able to get into their first houses now at a price they can afford.  I just hope the affordability continues.  With all the money the government is printing, there is sure to be inflation in our future. 

Posted by Brian Griffis (Realty Choice) about 9 years ago

Dan- It can and does make a huge difference and I think we will see a lot of this.

Brian- The inflation is coming I'm sure.

Posted by JL Boney, III, Columbia, SC Real Estate (Coldwell Banker) about 9 years ago

Participate