Two recent bank owned foreclosure offerings on Rittenhouse Square are prime examples of foreclosure trends for 2022, very different from what we saw with bank owned foreclosure listings post-mortgage crisis.
During the mortgage crisis banks were flooded with inventory, and demand was soft. Also in 2008-2011 lien holders were not set up for the volume of inventory that hit their books due to foreclosure. Their process is now streamlined. In addition asset managers and investors use advanced artificial intelligence to optimize returns by leveraging inventory to institutional investors. Strategies also include basic fix and flip by doing minor renovations before bringing the asset to market.
In my networking discussions with realtors, financial advisors and industry insiders across the country this is what we are hearing from behind the scenes. These two bank owned Rittenhouse Square condos tell the story of foreclosure trends in 2022.
HUD Owned 1 bd condo at The Dorchester – Unit 2312
Listed in early February, the asking price of $450K shocked many but reflected the overall shift to a sellers market that I’ve been seeing during the past 6-8 months in the under $500K Rittenhouse condo market. It was offered to owner occupants first, with a protected period to submit offers online.
The offer deadline for owner occupants was February 20th. The winning offer came from a buyer represented by the listing agent and we won’t know the final price until it closes on April 15th. We do know anecdotally that it had to be above $325,000.
The opportunities to buy 1 bd condos under $300K on Rittenhouse Square have almost vanished as older listing started to be snatched up by buyers who were savvy enough to see these trends in motion.
Riverwest 1 bd condo – Unit 603
Located a couple of blocks north of Rittenhouse Square at 2101 Chestnut, Riverwest Condos are a popular spot for students, renters and one of the most affordable condo locations in the overall Rittenhouse Square neighborhood. Security, on-site gym and easy access to University City as well as all that Center City has to offer as well as being pet friendly help make these condos a place to call home.
However, prices historically have not escalated at Riverwest. It can be a good starter investment since there’s a strong rental demand here. The increase in values reflected in condo sales that border Rittenhouse Square haven’t been as strong at Riverwest. However, this bank owned unit hit the market with an aggressive valuation of $172,000. Basically mid-point in the 1 bd market. The listing was published February 21st with a 7 day protected period for owner occupant offers. As of the publication date of this blog article, it’s 28 days on the market and still active with no price adjustments.
Mainstream media is failing badly at reporting effectively on the foreclosure market in 2022. Unfortunately, what makes a good sound byte and click bait for ads doesn’t reflect the current complexities of today’s market. For example, many articles reporting on foreclosure trends for 2022 track trends this year vs 2021, when foreclosures were under a moratorium. How does that make any sense?
Let’s talk about your real estate goals, and whether a short sale or foreclosure many fit your strategy for success. Book a time on my calendar. I’m here to help!