Minnesota Foreclosure: Busiest Section of the Real Estate Market

Douglas County’s housing market is currently suffering due to the economic crisis that affects property sales and increased foreclosures. October data released by State Realtors Association indicated an active housing market, but showed low home prices.

Realtor Tom Bridge explains that the local economy is affected by the housing market, especially the increased in Minnesota foreclosures. He believes that the local economy is a lot stable but still, prices of homes have gone down.

However, Bridge notes that despite the lackluster performance of the overall real estate market, the foreclosure business is the one segment that remains strong. He points out that an increasing number of investors are interested to acquire properties that have been foreclosed. This makes the foreclosure market the busiest section of the real estate industry.

The rental market also got a boost from the surge of foreclosures because people who lost their homes need to have a home to live in, according to Bridge.

Meanwhile, Marty Kurtiss, chairman of the Superior Landlords Association Program, says that he knows several landlords who are looking for foreclosed properties to buy.

According to Kurtiss, a landlord-friend told him that one or two properties that have been repossessed were used to be available for sale on the market. Now, his friend added, there are at least 4 properties placed on the market which indicates that more and more homeowners are losing their properties.

Kurtiss points out that the rental market remains strong despite the economic crisis because even if people maybe trying to streamline their expenses, they still need a home to live in.

On the other hand, Carol Kangas, a realtor operating in Iron River Area, acknowledges that the economy affects the overall real estate market performance. But she believes that despite the economic crunch, realtors should be more aggressive in their approach to business because there are still homeowners who have the financial capacity not only to buy foreclosures but second homes or land.