While the show me state has always been one that prides its self on needing to see clear hard evidence of something, the recently released numbers regarding foreclosure here are cause for some moderate celebration.
According o the most recent information, the number of foreclosure homes decreased 5.83%. This means that in this state nearly six percent fewer homes actually fell into the foreclosure market. In Missouri it only takes 60 days for foreclosure to happen so these numbers are an accurate representation of the state of foreclosure there at this moment. At that same time the average price of homes in foreclosure increased 37.2%.
So along with the decline in available homes, the price of those homes has gone up over one third. This is due to several things. For one you are looking at supply and demand. There is less of a supply since less property is being made available and that tends to drive the price of the commodity, in this case real estate, to higher levels.
When you couple that with the fact that many people here were spurred on to make purchases of real estate in advance of the government mandated deadline to be able to qualify for the tax breaks that were being offered to people purchasing a first time home, it is easy to see why the prices of the property was sent so far up.
When you have less supply and a hard deadline to beat in order to save money, it is sometimes a choice that people make to spend a little more on the offer price and make it back in larger amounts in the tax credit on the other end.
In plain terms, that means people spent more to purchase the property because they wanted to make the deadline and get the tax credit.