A case study of two nationwide cohorts of properties brought to foreclosure in Q4 2022 reveals that proactive pricing is key to optimal distress disposition during a housing slowdown, according to Auction.com’s 2023 Distressed Market Outlook.
Pricing (credit bid-to-estimated after-repair value) in the proactive pricing cohort was reduced by 11 percent between September 2022 and December 2022, while pricing in the status quo pricing cohort came down just 1 percent during the same period.
“With home prices now down more than 9 percent from their May 2022 peak and forecast to fall further in many markets, sellers who price proactively will minimize the risk of taking on properties that are losing value every day,” said Ali Haralson, Auction.com President.
Read the report to learn more about the case study and find answers to pressing questions:
- Will foreclosure volume continue its gradual post-moratorium rise?
- What is bidding behavior saying about 2023?
- How much did foreclosure auction sales outperform traditional REO sales in 2022?
- What are the retail homeownership rates of foreclosure auction sales and traditional REO sales?
- How much value is being added by third-party buyers during renovations?
The 2023 Distressed market Outlook analyzes propriety data from properties brought to foreclosure auction via the Auction.com platform and public record real estate data.