So you want to find investment properties in Gilroy!? Is Gilroy is a good market to purchase REOs and Auction bound properties?! Well, lets see what happened to the Gilroy market for July 2013.
The Foreclosure data makes it rather clear that the number of REOs and Auction properties are rapidly declining in Gilroy, California. The chart below shows the Gilroy foreclosure Data from Property Radar that shows significant decline in the number of REOs and Auction properties for July 2013.
The data shows that Notice of Defaults have declined by 74% from previous year while the Notice of Sales have declined more than 48%. That means only very few Gilroy homes are heading to auction at the court house for you to have a chance to bid on them.
As for foreclosure inventories that data is not that promising either since the recent increases in home prices have allowed some Gilroy homeowners to avoid Short Sale and list their home for a Fair Market Sale.
In the chart below shows substantial increases on Published Bid (15%), Opening Bid (92%) and the Winning Bid (by 113%) for the all the properties that made it to the auction block in July 2013. The chart shows that the Average published bid for a Gilroy Home was $647,000 but the winning bid was $513,000!
Our conclusion is that despite substantial increase of prices over 2012; Gilroy auction homes are still selling at a discount to their published bid which is a sign of hope for investors with cash to invest.
As the foreclosure data clearly indicates we are well on our way to a market where the distressed sales will not be dominating the market. Also, the inventory of for sale homes will come from Fair Market Sales and traditional sellers who want to sell to upgrade.
However, given the tight credit market on residential loans that will be a tall orders since most of the major lenders are still gun shy about offering jumbo loans for these kind of sellers who want to move up.
As this trend continues it creates demand for regular properties where our cash buyers can make a quick offers to your home if you are ready to sell. Contact Us for a Complimentary Home Value Report showing how much you will net if we sold your house today.