The Lowell Connector  

How  Much "Drag" Do Foreclosures Create on Prices?We at Lowell Connector use a formula comparing the property tax assessment to the actual sold price. We call the resulting percentage number the "assessment ratio." This ratio predicts the sold price in 90% of the cases. Using our chart, you can that how foreclosure properties are a drag on the "normal" home prices. This reduces the value on all homes in your area. For the ratio in your town for the normal, short, and foreclosure ratios email us your town at eramorrisonrealestate@era.com.

Lowell Condominium Assessment Ratio Results

The most recent results from Jan 1 to Apr 27 show that there is now an average difference of 17% between the average foreclosure sale and the average "normal" or non-foreclosure sale. Short sales as expected fall in between the two at 12% less.

An interesting new trend is that foreclosure sales in Lowell now take only 94 days to close while short sales are taking an average of 187 to close. This is due to the continued inabilty of the banks to get a smooth process in place to conduct a short sale. The process for short sales is still slow, tedious, and frustrating for brokers and buyers alike.On the other hand, bank foreclosure procedures have actually improved. This switch has lead to more and more buyers shying away from short sales. This is a nationwide trend seen by agents all over the country.

check out the actual charts by following links:

"Normal" Lowell Condo Sales

Short Lowell Condo Sales

Foreclosure Condo Sales

 Merrimack Valley RE Report Feb