Foreclosure scene is changing
Today, a new Harris Interactive poll shows the percentage of buyers at least “somewhat likely” to consider buying a foreclosed property fell from 55% in May to 43% in November. Is this a sign that the buyer pool is shrinking for foreclosure properties?
On top of the news of an overall waning willingness to purchase foreclosures, buyers’ expectations are changing. 65% of those surveyed expect at least a 30% discount when purchasing a foreclosure home.
“That’s actually a realistic expectation, according to the latest foreclosure sales data analyzed by RealtyTrac, which shows that in the third quarter foreclosure properties sold for an average of 33 percent below non-foreclosure properties,” said RealtyTrac spokesperson Daren Blomquist. Interestingly enough, the survey showed that residents expect higher price cuts in states like Florida and Nevada who expect a 50% discount.
The last survey, completed in May, showed that 85% of saw negative aspects of buying a foreclosure, but this month’s data reveals a 4% drop meaning only 81% see negative aspects to the purchase. The buyer pool makeup is changing also, with 92% of move-up or second home buyers saying they’ll at least somewhat likely to buy a foreclosed property, despite the sentiment overall against foreclosures.
REOs and Short Sales are growing specialties in the real estate profession and we will likely see more agents jump on board as perception and actions change over time as the stigma of foreclosure properties shifts.