Spring is always a popular season to look for a new home, and this spring may be one of the best in nearly a decade for buyers to take advantage of deals on the housing market. According to the National Association of Realtors (NAR) the median price for existing home sales is $156,100, the lowest since February 2002. In addition to this, Move Inc. reported that inventory is up 13% in the past year. So what does this mean when you want to buy a foreclosure?

The main factor to consider here is competition. Banks are in the business of lending money, not owning houses. The foreclosure process itself is very costly when legal fees are taken into account, and carrying costs for properties add up quickly. Homes need to be winterized or there may be extensive and costly damage to the house, community ordinances require lawn maintenance and snow removal, acts of vandalism may affect home values, and the list goes on.

When you consider that home sales dropped 9.6% in February, also according to NAR, it becomes clear why banks need to price foreclosed property aggressively. This is the best way for them to rid themselves of the costs and aggravation associated with holding inventory as quickly as possible. This motivation, in conjunction with the lowest median home price in almost a decade, creates a great opportunity for any buyer considering a foreclosure purchase. Add in low interest rates and lending programs designed specifically for buyers wishing to renovate their new home and you can see why considering a foreclosure for your new home is a smart idea.

Pennsylvania in particular is a hot spot for finding great deals on foreclosed homes. According to RealtyTrac, buyers in Pennsylvania who bought a foreclosed property in February 2011 paid 40% less on their homes’ purchase price than the average purchase price. This makes Pennsylvania the fifth highest ranked state in the country for saving money on foreclosures.

If these numbers appeal to you and you’re interested in learning more about buying a foreclosure, please feel free to contact us for more details or browse our inventory and see what deals we have available!