A new survey by Realtor.com has found that prospective homebuyers are more interested in foreclosures than ever before – and in a major way.
Since October 2009, homebuyer interest in foreclosures has risen by an incredible 159 percent, which represents a tripling of the previous rate. Here are some of the other essential findings from the survey:
- 64.9 percent of homebuyers said they’ll likely buy a foreclosure, compared to just 25.3 percent in 2009.
- 92.1 percent of buyers interested in foreclosures said they plan to live in the property, rather than sell it, and the 6.9 percent who said they would buy the property as an investment is down from 13.2 percent in 2009.
- Most buyers expect to receive discounts from 10 to 30 percent on their foreclosure purchase (the average discount is currently 29 percent).
- 56.4 percent expect their purchases to appreciate by 10 percent or less in five years, or 2 percent a year.
Steve Berkowitz, the chief executive officer of Realtor.com operator Move, said a number of factors have inspired buyer interest in foreclosures.
“Reductions in supply, expectations that home prices will rise, and changing attitudes towards foreclosures are contributing to the increased demand, especially among owner-occupants,” Berkowitz said.