Will a surge in buyer interest in Foreclosed Homes and Pre-Foreclosure Properties help soak up high levels of for-sale inventory?
No sure answer here! In any event, however, interest in foreclosed properties is steadily growing stronger!
According to a survey conducted by Harris Interactive, commissioned by RealtyTrac.com and Trulia.com, and reported in the Friday, May 22nd Edition of National Realty News Online, 55% of respondents surveyed said they would consider buying a foreclosure property as their new home. This compares to 47% of those who responded to the same survey last November.
Of those surveyed, 40% felt they would save at least one-half on foreclosed properties, versus 31% who felt the same way in November,2008.
Despite heightened levels of interest in foreclosed properties, however, concerns about the condition of foreclosed homes for sale have increased as well, Fully 85% of those asked were concerned about the negative aspects of purchasing a foreclosure property, up from 80% last November. Of that percentage, 71% stated concern over an unknown cost for repairs to the home, 46% felt the entire purchase process risky, and 31% were afraid the home might lose value.
Further, an overwhelming percentage - 83% - feel they should receive deep discounts if they purchase a foreclosed property, to cover their perceived exposure to risk.
At the same time, the proliferation of distressed properties seems to be forcing those selling conventionally to lower their prices of their homes for resale. According to the same survey, 24% of existing home resales have had at least one price drop in order to stay competitive.
More Harris stats -
- Intention to purchase foreclosed or distressed properties varied by age group. In the younger age demographic, 66% of those between 18 and 44 said they would consider purchasing a foreclosure, compared to 53% of those aged 45-54. Only 38% of those 55 and older are thinking about purchasing a distressed property.
- Those currently renting are more likely to go the foreclosure route than those who currently own their home (68%, versus 49%).
- Households with children under 18 were more likely to consider a foreclosure purchase. Roughly 66% of those with kids were considering buying a foreclosed home, versus 49% of those without at least one child under 18.
Please review our post today via BlogChicagoHomes.com.
DEAN & DEAN'S TEAM CHICAGO