AUCTION PRICES REFLECT RISING CONFIDENCE Similarly, the price that winning bidders at auction were willing to pay relative to estimated after-repair value increased at the end of the year, up 3% in November and up another 3% in December. Those two monthly increases followed five out of six months with a declining bid-to-value ratio. The bid-to-value ratio in December was at a six-month high (see Fig. 2). The bid-to-value ratio for properties purchased at bank-owned (REO) auctions also hit a six-month high in December, rising monthly in November and December following five out of six months with declines. “The shortage of foreclosures going to auction is making us more likely to buy properties with tighter margins,” wrote one Auction.com buyer in response to a buyer sentiment survey sent in early January. ELECTION RESULTS BOLSTER INVESTOR CONFIDENCE The survey found that the November election boosted the confidence of many local community developers buying at auction. More than one in four surveyed (43%) said the results of the election increased their willingness to buy distressed properties at auction compared to only 3% who said the results of the election decreased their willingness to buy. The remaining 54% said the election results had no impact on their willingness to buy. “Election results should create a better market going forward,” wrote one survey respondent.
Source: Auction.com, Realtor.com
Source: Auction.com, Freddie Mac
32 | think realty magazine :: march - april 2025
Made with FlippingBook Online newsletter