A new report has been issued which shows that investors are starting to drive up the prices of distressed properties as more companies buy up the properties around the country and companies such as Blackstone Group LP and Colony Capital LLC try and make the most of what is now a rapidly shrinking inventory.
Homes which are in the process of foreclosure or have already been foreclosed on by banks saw a 7 per cent rise in their prices over the second quarter of 2012, an increase which represented the largest increase in the space of one year since 2006 and offers more proof that the recovery of the real estate market across the country is holding its recovery.
The figures, which were released by Realt Trac showed thar there had been a drop of 22 per cent in the number of distressed properties being sent to market.
President of the National REO Brokers Association, Michael Krein said "There's virtually no supply in a lot of the markets right now. What we're finding nationally is that 50 per cent of all purchasers are investors because they can outbid the owner-occupant buyers. Investors are bidding up anywhere from 5 to 25 per cent over the list prices."
Over the last number of months the property market has been showing increasing signs of a sustained recovery as prices continue to rise and more people are returning to the market. Construction has begun again in a number of areas to help meet the rising demand for new properties while the number of houses being foreclosed has dropped with many people being able to meet their repayment obligations or coming to an arrangement with their lender.
