First-time Buyers are Eager to pick up Foreclosed Homes

The US is in the grip of a recession. Unemployment is at an all-time high. As people lose jobs, they are faltering on mortgage payments. Hence, foreclosures have become quite common. The prices of foreclosed homes are low. This is drawing the attention of many buyers who are picking up the properties for a steal.

According to a recent survey by Move.com, investors interested in buying properties have almost doubled since the beginning of the year. Moreover, buyers have a wide selection of homes to choose from. The recent survey also pointed out 12 per cent of buyers looked at homes as an investment as compared to only 6 per cent, seven months back.

Most investors were interested in buying foreclosures. About 13 per cent of those surveyed had plans of giving their house on rent. Eleven per cent said that they would refurbish the homes for resale. Seventeen per cent planned to let a family member stay in the house till it could be sold off at a profit.

What is interesting 25 per cent said that they want to buy a foreclosed home. These people are interested in buying at a low price and see the equity on their homes increase over the next few years. Then they would sell off their homes. The buyers are also hopeful that they will pay much less than the prevailing market price for a closure. In fact, 39 per cent said that they expected a discount of 25 per cent or even more. The interviewees are also hopeful that the property prices will go up in a few years or more.

People are more interested in buying now as prices have reached the rock bottom. People are more desirous of taking advantage of the low prices. It may be noted that 1000 people took part in the poll.

The survey brought to the fore what already housing experts agreed about – prices are affordable now and the market is replete with cheaper homes; something that should make the market attractive to buyers. The market is attractive for buyers who are interested in making an investment in real estate.

Another development that is attracting buyers is the extension of tax credit from November 30 till April. That is drawing many first-time buyers to the market. It seems that the home market will be an unusually busy this winter. However, experts feel that unless the employment scenario improves, the real estate market will not be revived.