Buyer demand for foreclosures leaps triple digits
Friday, June 1, 2012
Interest in buying foreclosures has almost tripled among potential homebuyers in the past two and half years, and 92.1 percent of those buyers plan to live in them rather than use them as investments, according to a new national survey released today by Realtor.com.
According to the Realtor.com survey, homebuyer interest in foreclosures has jumped 159 percent since October 2009 when foreclosures accounted for 29 percent[i] of all home sales. In fact, more than two-thirds (64.9 percent) of today's homebuyers said they're likely to buy a foreclosure compared to 25.3 percent two and a half years ago. Only 6.9 percent of today's potential home buyers are interested in buying a foreclosure as an investment, down from 13.2 percent in October 2009.
'We see a combination of factors coming into play explaining the unexpected interest in foreclosures," says Steve Berkowitz, chief executive officer of Realtor.com operator Move, Inc. "Reductions in supply, expectations that home prices will rise, and changing attitudes towards foreclosures are contributing to the increased demand, especially among owner-occupants."