Website Predicts Foreclosures In Various Counties

The House Buyer Network is a website which helps home owners find buyers for their property. With the number of foreclosures ever increasing, this website is being accessed by users from all over the country.

Anyone who looking to sell their property can contact the website. The homeowner is put in touch with an agent who gets the property appraised. Attempts are then made to sell the property at a slightly lower rate than the appraised price. If the property is not sold before a predetermined period, the agent has the option of buying it at a still lower rate. This rate too is decided at the onset of the transaction.

The level of activity on the site has prompted the Network to make predictions about the real estate market. Duane LeGate who is associated with the site has made forecasts for up to 9 months into the future. He sees an increase in foreclosures resulting in lower real estate prices and a reduction in the pace of property sales.

The present situation reflects these predictions. Orlando has shown a flurry of foreclosure sales resulting in a 700 % increase in the number of such cases filed. Orange County and Florida too show signs of following suit. LeGate’s predictions about Phoenix and Arizona in particular have been accurate.

LeGate uses his own methods to make the forecasts. He finds short sale interest rates rather than price indices give a more accurate indication of the market trends. He observes the number of visitors to the site from each county. When he finds that there is considerable traffic from a particular region he comes to the conclusion that the interest rates in that region have gone down significantly. He is then able to gauge the effect this will have on the real estate market.

Others also agree with LeGate. Redbrick Partners, a realtor firm, points out that insurance rates have risen after Hurricane Katrina. This coupled with the pinch of taxes after the sale, it feels, has resulted in depressing the market further.

The sub-prime market too has seen some instability. Initially the rates were low and many were lured to it by the prospect of quick sales. But the subsequent rise in prices has been quite steep and mortgages have become a burden for homeowners.

However, LeGate’s predictions do not always match those made by others in the same field. A realtor’s association in Orlando has concluded that the market is gradually stabilising as prices of real estate are on the rise, even if at a slow rate. Fairfax County, Phoenix, Virginia and Prince William have all been showing upward trends.

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