Real estate investing is not only about making a profit from buying and selling properties. It has a lot to do with keeping a finger on the industry’s pulse, analyzing trends, and making intelligent decisions and plans based on the information.
An important resource is foreclosure trends, which serve as reliable barometers of a state’s stability and vitality. This year’s data on foreclosures hold significant potential for real estate investors.
2018 Foreclosure Trends
Halfway through 2018, foreclosure rates are still dropping fast. In fact, experts are predicting a historically low year for foreclosures.
Despite this, 40% of local markets are also seeing a rise in foreclosure filing rates. This translates to 362, 275 foreclosure filings across the United States. These include scheduled auctions, default notices, and bank repossessions.
Compared to 2017, foreclosure rates for this year are down by 17%. Out of 299 metropolitan statistical areas (MSAs), 26 announced year-over-year increases when it comes to foreclosure starts. The recent housing bubble may have some impact on present foreclosure trends, but analysts are quick to point out that several other factors are responsible as well, such as present distress in real estate markets.
Of all states, three were hit with the highest foreclosure rates. These are:
- New Jersey
New Jersey may have bagged the unfortunate spot as the country’s leader in foreclosure, but compared to 2017, filing rates in this state have actually decreased by 2%. Sadly, that’s not enough to place them lower down the rank. It’s also important to note that more than half of foreclosure filings in New Jersey can be traced to loans back in 2004 and 2008.
Is a Foreclosure Crisis on the Horizon?
That’s one of the biggest questions that the industry is trying to answer right now. The good news is that only a few states show the remnants of the latest foreclosure crisis. Experts are foreseeing impressive low levels of mortgage delinquencies in the second half of 2018, and explain that a housing bubble is not very likely.
While existing home sales remain healthy, they’re not as strong as they can be due to factors like home price appreciation, limited inventory, and rising rates. Therefore, real estate investors should keep a close eye on changes in the foreclosure market.
Foreclosure Trends in Indiana
As for Indiana, foreclosure rates are pegged at 1 in every 1802. Top counties in terms of foreclosure are Lake, Huntington, Greene, Morgan, and Miami. Auctions make up a bigger part of foreclosures, with bank-owned and pre-foreclosures following closely.
For the smart real estate agent, this offers a good opportunity to find great properties and make a profit off them. It also offers an opening to reach homeowners who are looking for an alternative type of housing.
However, it’s not easy to keep track of foreclosures and determine which ones have solid potential. If you’re not a member of an established real estate investment group, then you’re missing out on the chance to generate wealth from this section of the industry.
CIREIA leaders have prospered in all market conditions. With that said, they believe that our market is not headed toward a downturn; rather a correction back to normal.
As Central Indiana’s foremost real estate investors association, CIREIA can help you gain a better understanding of foreclosures and other key elements of the real estate industry, as well as how to take advantage of them and find success as a real estate agent. Call us today to find out how to become a member!