Foreclosures - Buying At Discount
A recent new study on foreclosures conducted by Trulia and RealtyTrac found that 56 percent of U.S. renters and 47 percent of current homeowners are at least “somewhat likely” to purchase a foreclosed home.
Along with having some reluctance about hidden costs, a risky buying process, and still-declining home values, many potential buyers expect to save money if they buy a foreclosure. In fact, the companies’ survey found that on average, respondents expect to pay 38 percent less for a foreclosed home than a similar home that was not in foreclosure.
RealtyTrac says these expectations are pretty much the same as the average discount of 36 percent it’s currently seeing on sales of bank-owned REO homes.
According to Trulia’s latest data, it is more affordable to buy a home than to rent in 78 percent of major U.S. cities. With concerns of rising inflation and the potential for rising interest rates, they say now is a good time for people to buy as they may not be in this environment for much longer.
The widespread prevalence of distressed homeowners facing foreclosures in today’s market is one reason why negative sentiment toward the government may be so high, according to the companies’ report.
Almost one-third (30 percent) of homeowners said they themselves have, or they know someone who has experienced trouble with their mortgage situation and applied for a loan modification, stopped making their payments, been foreclosed on, simply walked away, or sold their home through a short sale transaction.
As more cities across the nation experience double dips in home prices, more than half (54 percent) of those surveyed believe recovery in the housing market will not happen until 2014 or later.
In a previous survey conducted six months ago, 42 percent of American adults said they thought the market would turn around by 2012 or had already turned around. Now, only 23 percent continue to hold this sentiment.
This survey reflects a growing perception among potential homebuyers that the housing recovery is still a long way off. Demand remains weak, loans are increasingly difficult to qualify for, and the shadow inventory of several million distressed properties is weighing down the market. All of these things need to improve before housing can recover.
The Mooney-Jones Team/FM Realty are experts in local foreclosures, REO, and short-sale properties. Please contact us for further information and a current updated list of foreclosures in the Raleigh Real Estate area. You can also search area foreclosures “on your own” on our website. Sign up for a FREE Listing Manager Account and get email updates for properties that fit your price and taste.
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