The reign of foreclosures is over, as the number of closed foreclosure sales fell to only 8% of the market in August 2012. Simply put: foreclosures are becoming a rarity. That's great news for your neighbors, as it's an indicator that the housing market and economy are returning to its former glory. But if you're looking to take advantage of a foreclosure opportunity, you may have missed the last boat.

Right now, foreclosed homes are staying on the market for an average of only 20 days. To put that into perspective, foreclosures were listed for an average of 54 days last September, and distressed homes were competitive even then. In order to be successful with foreclosures in the current market, you're going to have to be fiercly competitive and you will need an experienced agent on your side.

It also means the banks won't be undersold. In August, foreclosures sold for an average 3% higher than their asking price. That's the equivalent of a home listed at $500,000 being sold for $515,000. This phenomena occurs when homes are perfectly priced within a market, as competitive offers will actually drive up the final closing costs. (We try to implement the same strategy when pricing the houses we sell but it's hard to predict.)

As the current Orange County sellers' market continues to take its toll, foreclosures aren't the only sales to benefit. The amount of available inventory has dipped to a record low, making it harder than ever to find a great deal on a home. This is great news if you're a seller but not so much for buyers, who are having trouble in all aspects of real estate. If you must buy now, it's best to shift your focus back to non-distressed properties, as the number of equity sale closures has hit a record high.

The silver lining is for sellers! This is a great time to sell a home you've been sitting on. Orange County has always been a popular place to live and that has changed, which means there is an ongoing influx of new residents who need to buy now. It truly is the perfect time to sell a property and make a profit.

To find out more, contact us today and request the full version of the Orange County Housing Report! We would be happy to send you the report, along with other valuable information about real estate in the O.C.