The foreclosure auction data broken down by value range indicates that other investors are also shrinking their buy box in terms of price range. Based on their “after-repair” market value, properties valued above $300,000 saw the biggest drop in competition from the peak in February to June, the latest month with data available. That above-$300,000 value range saw a 31% decrease in competition over the four-month period, while properties priced in the $100,000 to $300,000 range saw a 21% decrease drop in competition and properties in the under $100,000 price range saw a 12% decrease in competition. Broken down by region of the country, the foreclosure auction competition decreased the most between February and June in the West (down 39%) and the Southeast (down
36%). Competition was down 22% in the Northeast and 16% in the Midwest. The bigger drops in the West and Southeast align with what Lizell is recommending to his students: a retreat from the heightened risk of “cyclical” markets more prone to bigger price swings and toward the relative safety of “linear” markets that tend to experience slower but steadier price growth over time. “Some of your more cyclical markets may take a 20% hit (in prices),” said Lizell, noting that the retreat from cyclical markets like California has been in place for some time now as those markets became too pricy for many investors even before the pandemic. “A lot of our students are California people. It’s hard for them to find deals, so we teach them how to find deals in these other states: Indiana, Ohio, Kansas, Texas.”
Demand Failing Faster in Southeast & West
Southeast
West
Northeast
Midwest
41
41
40
39
33
32
31
31 30
28
27
25 25
24 24
24
24
23
22
21 21
21
21
20
JAN
FEB
MAR
APR
MAY
JUN
Online Saves Per Property Brought to Foreclosure Auction
24 | think realty magazine :: september - october 2022
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