The median price per square foot paid in Bend last year for stick built houses on less than one acre was $104.66. But this figure differs dramatically depending on the type of sale.
While the overall median price per square foot paid in 2010 was down 6.6% from a year earlier, the price per square foot for all "traditional" sales (not a foreclosure or short sale) decreased by less than half that, down just 3% from 2009.
And short sales, besides seeing a jump of more than 20% in the number of successful deals last year, had a 6.2% lower median price per square foot than those from a year earlier.
So where does this leave foreclosures? The median price per square foot paid for "bank owned" properties plunged 11.1% last year. At $87.32 per square foot, foreclosed houses sold for a whopping 30.9% discount from traditional sales!
While I'll agree that there is more perceived risk in buying a foreclosure (seller's are exempt from disclosing to a buyer any defects affecting the property, for example) and that many need at least minor repairs (paint and carpet, etc.), a discount of 31% seems a bit extreme.
As a result, and as many buyers and investors are discovering, foreclosures are providing some truly fantastic buys, even in today's choppy market.
Let me know your thoughts by posting your comments below.
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