Current Housing Indicators |
| CURRENT | PREVIOUS | ||
| Existing Home Sales | 4.49m | ▼ | 4.74m |
| New Home Sales | 309,000 | ▼ | 344,000 |
| Housing Starts | 583,000 | ▲ | 477,000 |
| Building Permits | 547,000 | ▲ | 531,000 |
| HMI | 9 | UNCH | 9 |
| Existing Home Prices | $170,300 | ▼ (annually) | $199,800 |
| New Home Prices | $201,100 | ▼ (annually) | $232,400 |
#DIANAOLICK ON TWITTER
- As Mortgage Refinancings Surge, Banks Struggle
- Forty States Sign On to Foreclosure ‘Robo’ Settlement
- Running Robo-Settlement Numbers
- Own vs. Rent Riles Government Housing Policy
- Obama's Mortgage Refi Plan to Go Through FHA
- Housing Demand Defies Fundamentals
- US Treasury Forcing Mortgage Principal Forgiveness
- Robo-Reality: Final Foreclosures Fall as Pipeline Swells
- New Financial Crimes Unit Could Throw Wrench in ‘Robo’ Settlement
- President Obama Proposes Mortgage Refinances for 'Responsible Borrowers'
MOST SHARED
- Stocks Dip as Traders Shrug Off Greece News
- Can Anybody Be an Entrepreneur?
- Greek Politicians Reach Austerity Deal
- White House's Upcoming Jobs Forecast Already Out of Date
- Jobless Claims Drop 15,000, Stay on Downward Trek
- Top Fashion Stocks for 2012
- Two Top Ford Executives Set to Retire
- US Auto Industry Made Stronger by Increase in Exports
- ECB Holds Rate, Relaxes Rules for Long-Term Loans
- A Greek Deal, but What Is the Deal?
- PepsiCo CEO: We’re Not Splitting the Company
- Can Ford Make a Smooth Transition in Management?
- Steelers' Antonio Brown Spends Super Bowl Week with Twitter Fan Turned BFF
- China’s Steelmakers Set for Turnaround: Analyst
- Bulls Bet Silicon Motion Will Bounce
- News Corp. Beats Estimates on Studio, Cable Strength
- Bindi: Charm is Not Enough for Italy's Prime Minister Mario Monti
- Tobacco Stocks a Hot Dividend Play: Analyst
- Is Apple Coming to Sam’s Club Stores?
- Greek Political Leaders Agree On Austerity Reforms
- ECB Holds Rate, Relaxes Rules for Long-Term Loans
- Ban on Insider Trading by Congress Passes House
- Mortgage Plan Gives Homeowners Bulk of the Benefits
- Are Young Workers a 'Lost Generation'?
- Two Top Ford Executives Set to Retire
- 12 Unique Dating Sites
- Bank of England to Print More Money to Boost Recovery
- Jobless Claims Drop 15,000, Stay on Downward Trek
RSS FEED
Realty Check
Foreclosures: Are Home Buyers Missing An Opportunity?
![]() |
Foreclosed Home |
It seems that negative sentiment surrounding foreclosures is turning buyers off of what should be some of the best real estate investment opportunities in decades. The survey says 80 percent of adults are concerned with negative aspects, such as hidden costs, a potentially risky purchase process, home price depreciation and personal connection with foreclosure (not sure exactly what that last one means, just maybe that there is a social stigma attached to a foreclosed home I guess).
Now I have to take this report with a grain of salt because I’m a stat gal, and I happen to know that foreclosure sales are not only abundant, but they’re on the rise. In Las Vegas, which boasts 30,000 foreclosures in 2008, two out of three home sales are foreclosed properties. In California, foreclosure sales are pushing up total existing home sales like never before. I’ve also been to several foreclosure auctions and there are plenty of bidders on hand.
You then have to pose the question: Who’s buying foreclosed properties? Is it the average American that would have been included in this survey or is it largely investors and investment companies?
The survey also says that 75 percent of respondents expect a discount “of at least 25 percent on a foreclosure purchase,” while 30 percent expect “a major discount of at least 50 percent” compared to a comparable home not in foreclosure.
I’m a bit surprised that so many folks only expect a 25 percent discount. The bulk of foreclosed properties are in states with the largest price declines. If I were buying a foreclosed property, I’d be in at least the 50 percent discount window.
Questions? Comments?










