Half of homeowners and renters would consider foreclosure purchases

Many American buyers are interested in buying a foreclosure, but there are too many distressed properties for buyers to absorb them all – and the numbers of properties in stages of foreclosure affect the overall market, according to Forbes.com.

May 23, 2011
foreclosure, housing market, real estate market, foreclosed homes, buyer outlook

Many American buyers are interested in buying a foreclosure, but there are too many distressed properties for buyers to absorb them all – and the numbers of properties in stages of foreclosure affect the overall market, according to Forbes.com.

Body: Numbers show that many American buyers are interested in buying a foreclosure – 56 percent of renters and 47 percent of homeowners polled. However, the preponderance of distressed properties means there aren’t enough buyers to absorb them all – and the numbers of properties in stages of foreclosure affect the overall market, according to Forbes.com.

A new homeowners survey released jointly by Trulia.com and RealtyTrac now suggests we won’t see a housing recovery until 2014 at the earliest.

Every six months, Trulia and RealtyTrac.com, an Irvine, Calif.-based foreclosure listing site, collaborate on a homeowner’s survey conducted by Harris Interactive.  The most recent survey indicates that 54% of Americans believe a recovery is at least another two and a half years away, up from 34% of Americans six months ago.  Given the multitude of recent reports pushing disappointing data, the negative shift in sentiment is not a surprise.

The foreclosure crisis has much to do with the state of the market. RealtyTrac estimates bank-owned properties (REOs) on the market sell for an average discount of 35% off non-distressed for-sale home prices.  In places like California, that discount is even steeper at 46%. Those discounts force list prices down on everything else in the market.

For more information: http://blogs.forbes.com/morganbrennan/2011/05/19/dont-expect-a-housing-market-recovery-until-2014/

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