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Unemployment Fosters Reluctance Among Buyers of REO Homes for Sale

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By : John Cutts    99 or more times read
Unsure of whether they will still have a job by next day, most sellers and buyers of REO homes for sale and other types of residential properties are afraid to make a decision on whether to buy, sell or wait. For the unemployed, the main concern is for how long they will remain so and whether they will even find a job.

With the number of properties under foreclosure and bank owned property listings continuing to reach record numbers, homebuyers can enjoy the benefits of low priced dwellings and low mortgage loan rates. However, majority of Americans are reportedly reluctant to put down any money on a purchase no matter how cheap for fear that they will lose their jobs and they will be unable to keep their homes.

For sellers, the huge supplies of repossessed properties for sale have created a market that makes it difficult for them to sell their properties at a reasonable rate. So the dilemma is whether to sell now and sell for a loss or wait until the housing market shows some form of improvement, which at this point, analysts believe, is highly unlikely.

Another worry that nags at sellers is the length of time it takes for REO homes for sale and other types of for-sale residential properties to be snatched out of the market, if at all. Prior to the housing market crisis, a home can be purchased for as fast as a few days. Now, houses stay in the market for months without anyone showing any interest.

Foreclosure homes for sale and existing dwellings remain unoccupied for long periods of time while values of properties continue to decline, effectively dragging the asking price even lower. The disrepair that comes with being unoccupied for a long time also subtracts from the value of the home and adds to the maintenance cost of the seller.

The problem in the housing market has been initially attributed to the huge supplies of foreclosures and REO homes for sale, but analysts believe that the bigger factor behind the poor condition of the industry has more to do now with unemployment than anything else. The housing industry, according to them, will recover once the country's job market stabilizes.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.

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