In the fourth quarter of 2024, buyer demand for properties at foreclosure and REO auctions decreased; however, many buyers became more optimistic following the election results. According to Auction.com, 43% of buyers felt encouraged to make purchases post-election. Although auction sales saw a decline of 3% from the previous quarter, certain market dynamics suggested that prices and bidding competition were on the rise due to a shortage of foreclosures. This was reflected in the number of quality bids and varying local market conditions influencing buyer behavior.
Despite an overall decline in auction demand for foreclosures, buyer optimism increased post-election, with 43% indicating a greater intent to purchase auction properties.
The sales rate at foreclosure auctions saw a 3% decline from Q3 to Q4, yet remained 2% higher year-on-year, pointing to mixed market signals.
REO auction buyers also exhibited a willingness to spend more, with quality bids increasing as buyers reacted to a shortage of foreclosure inventory.
In local markets, 54% showed declines in bid-to-value ratios for foreclosure auction properties, though some markets experienced increases, highlighting varying local conditions.
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