I was interviewed last week by people newspapers on foreclosures in the Park Cites and Preston Hollow. We met at a million dollar foreclosure listing in Preston Hollow – a builder gone bust!
Foreclosures are on the rise for high end properties.
Since much of the market activity has been distressed properties across the nation (around 49% for 4th quarter) a common question is asked and rightfully so. What’s the question? Glad you asked…
Will the foreclosure(s) in my neighborhood make my home value go down?
You think the answer would be yes but that depends on who the seller is. Particularly in Preston Hollow and the Park Cities you have a different situation and more favorable than the typical foreclosure stigma. Let me explain:
There are 12 foreclosures in zip codes: 75205,75225 and 75230 that show up on the MLS over $500,000. What’s different about these owners are they are builders, investors, speculators and huge risk takers that got caught in the down turn and leveraged out. So most of these homes are new, maybe a couple years old that no one has ever lived in. And I will tell you up front that these properties are beautiful and in excellent condition. The foreclosure doesn’t look like a foreclosure. Most of these homes are well taken care of and are in pristine condition to sell, some have even been staged.
Needless to say on these foreclosure finds – top dollar is still the topic of the day. More room to ask $$$ off in my opinion. But you have to remember each sellers situation is different and how much you can get off depends on individual circumstances. Anyway – at least visually these homes are attractive and aren’t an eye sore – just vacant, which involves the neighborhood to watch the property to some extent. The buyer that will be able to afford this home will obviously fit the demographics but he will probably score a better price than say 3 months ago. In the big scheme of things – 12 foreclosures, so far, are not going to effect values that much, at least not for now. If I lived in one of these neighborhoods, I’d be out talking to the buyer when the house is shown, they love that and just might get it sold.
Here’s some hard data on sold foreclosures that the MLS has started publishing by area because of the increase in sales, this is what it looks like for our area of concern. When I have time I will upload the foreclosure Q4 report for download on the whole metro area so please check back…
Preston Hollow as of January 2009 had a total inventory of 693 properties for sale, 20 were foreclosures that represents a 2.9% share. For year end 2008, out of 703 sales, 43 were foreclosures which is a 6.1% share.
Park Cities as of January 2009 had a total inventory of 666 properties for sale, 14 were foreclosures that represents 2.1% share. For year end 2008, out of 795 sales, 32 were foreclsoures which is a 4.0% share.
So that should make you feel better and no the neighborhood isn’t going anywhere…I’ve just uploaded Dallas Foreclosure Report for Q4 on the left side bar under monthly market indicators if you’re interested on any areas of the metroplex. I think you’ll find it an interesting read. Have a great weekend and check the open houses, over 100 in 75205,75225 and 75230. Happy Hunting!
The post There Goes the Neighborhood – Luxury Foreclosure Finds appeared first on Your Guide to Finding the Home You'll Love!.