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Interest in Foreclosed Properties is on the Decline

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By : Julie Thompson    99 or more times read
Interest in foreclosed properties is on the decline. A recent survey shows there are less numbers of potential buyers for distressed units than in May. The poll conducted by Harris Interactive from 5th to 9th November noted that 43% were less likely to think about purchasing foreclosed houses as compared to May number of 55%.

However according to the report the investors, tenants and those who want to move up continue to retain strong interest in foreclosed houses. Among the tenants 57% are planning to buy one house at least in the future. The younger among the tenants are more likely to buy the same. 61% of the tenants aged between 18 and 34, and 65% of those aged between 35 and 44 are seriously thinking about opting to purchase foreclosed units. 40% among those 55 years and above are also thinking about purchasing.

The tax credit has recently been expanded and extended. From now on $6,500 credit would be given to those seeking to purchase foreclosed units even if they were not first time buyers. The time has been extended for applications to be submitted by April next year. It is expected to revive interest in purchasing foreclosed properties during the forthcoming months.

Meanwhile investors are seeing in foreclosed properties great opportunities. 23% of adults want to buy a second house or invest in property. Of this group 92% are likely to target foreclosed properties.

Buyers are hoping to expect handsome returns from their dollars by investing in foreclosed houses and are eager to invest. Two out of three adults amounting to 65% of the adults are expecting 30% discount or even more on these foreclosed sales. Those in the north-east of the country are hoping for the largest discounts. 43% are hopeful that the discount would be as high as 50%.

Pete Flint of Trulia that took part in the survey said, “Even during the darkest economic times, dreams don’t die. Foreclosures are providing never before seen opportunities for new segments of homebuyers and allowing renters to become first time buyers, allowing investors to grab great deals and allowing families to trade up to larger homes. Until unemployment levels off and starts to get better, we expect foreclosures to continue to play a big role in the 2010 housing market.”

The survey also notes that 95% of the adults in the country are ready to invest in renovations when they purchase foreclosed properties. About 55% of the respondents are prepared to spend 20% or even more to make alterations and improvements on the troubled units.
Julie Thompson, GM Sales & Marketing,

Julie Thompson, has been working on studying the foreclosures market, helping buyers on the finer points of foreclosure homes for sale. Try to visit and begin your foreclosures by state search.

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