Santa Barbara, CA --- February 24, 2011 --- Prices of foreclosure listings in Marion County, Indiana, which includes Indianapolis, are tightening between REO sellers in the area, according to a new REO foreclosure study conducted by RealtyStore.com. The median pricing spread of foreclosed houses for sale in the area varies by only a few thousand dollars between bank sellers and government sponsored enterprises (GSE's). The spread between median list prices for Freddie Mac / Fannie Mae foreclosure inventory, HUD homes and bank foreclosures in Marion County is $5,100. Fannie Mae foreclosure listings post the lowest median, while bank foreclosure medians are highest, according to RealtyStore. In addition, the median price of all foreclosure listings in Marion County was found to be posted at more than 50% below the overall market median home price.
"The Marion County and Indianapolis, Indiana market reflects a significant average foreclosure price discount, in terms of median list prices," commented Peter Ranck, Vice President, RealtyStore. "Seeing the median list price at 51% below the market median, and considering the close median list prices on homes offered by each type of REO foreclosure seller, suggests keen competition between Marion County - Indianapolis foreclosure owners who need buyers."
Median list prices, by REO seller break down from lowest to highest with Fannie Mae / Freddie Mac listings at a median of $49,900, followed by HUD homes posting their median list price at $52,000, and bank foreclosures in Marion County priced slightly higher at a $55,000 median. By way of comparison, the overall Marion County median price for all homes listed for sale is currently $109,900. The median price of all foreclosure listings is $54,000 or 51% below maket.
An analysis of list prices by seller versus the market median revealed 220 homes for sale by Fannie Mae / Freddie Mac under $109,900, 92 HUD homes listed below market median, and 586 bank foreclosures in Marion County - Indianapolis, Indiana listed below $109,900. Owners of real estate foreclosures in the area appear highly motivated to begin liquidating their foreclosure portfolios.
Another noteworthy market statistic is the level of standing shadow inventory in Marion County. The active, listed foreclosures in Marion County represent only 55% of all foreclosures currently held as REOs by financial institutions and government sponsored enterprises. The 45% of foreclosures awaiting listing for re-sale could further influence on future pricing and sales rates in their local markets when they are put on the market. When considering all foreclosures in the county, if the shadow inventory was brought to market at once, the population of local real estate foreclosures would push its share to 19% of all homes listed for sale in the Indianapolis and Marion County area. This is a considerable level of foreclosure density and is on par with the 20% foreclosure share recently seen in the study of foreclosures in Cleveland - Cuyahoga County, Ohio market.
See how RealtyStore's customers have benefited from RealtyStore's foreclosure listings and data on foreclosed houses by visiting the RealtyStore Reviews page.
REO is an acronym for Real Estate Owned. Real estate foreclosed with title held by a bank or other lender, or a government enterprise (GSE) including the VA, HUD or Fannie Mae / Freddie Mac.
Foreclosure listing means an REO with a for-sale price, actively listed.
Median price is the list price point where 50% of homes are listed higher and 50% are listed lower.
Shadow inventory is those REO foreclosures in inventory held by banks and government owners, which is not currently listed for sale.
RealtyStore Reviews and Foreclosure Trends studies provide the total number of REO foreclosure properties with a recording date on or before the date of this release. REO properties have completed the foreclosure process and have been repossessed by a bank, lending institution or government sponsored loan guarantor such as Fannie Mae, Freddie Mac, HUD or the VA. REO title holders, inventory counts and prices in any area can vary at any time. REO counts and prices are accessed through RealtyStore’s proprietary database which is derived through hundreds of public and private data providers. Local housing market data is derived from third party and public records offices.