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Low Priced Bank and Government Repo Homes Fail to Attract Buyers

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By : John Cutts    99 or more times read
Although residential properties like bank foreclosures and government repo homes are priced at record lows, majority of Americans are staying away from the home buying market. According to housing market analysts, the foreclosure crisis has created a fear among buyers as evident in huge declines in residential property sales all over the U.S.

Analysts cited the prices of newly built dwellings and foreclosed homes in Long Beach, CA as one example of how far housing prices have dropped, with the area recording a decline of around 35% in 2010 compared with its pricing peak in 2006. According to house hunters in Long Beach, they are trying to lessen the risk associated with further price declines, so they are considering dwellings within the price range of $200,000.

A big number of home hunters have also revealed that they are mostly considering California real estate foreclosure homes and are comparing the prices of these properties with sales prices from a few years ago. However, most first time home buyers are still afraid to invest in homeownership, even though the current market is offering them heavily bargained properties.

For those who have already gone through the homeownership route and are willing to take advantage of the very low prices of bank foreclosed dwellings and government repo homes, there is another problem. Before they can purchase these bargained residences, they need to sell their current homes first and this is almost impossible since willing buyers are scarce.

In addition, most of them are unsure whether they will remain employed, thus making it hard to exert energy on searching for good foreclosed homes sale deals. According to housing analysts, this fear of unemployment, coupled with worries of further housing price declines, has prevented potential buyers from taking advantage of the huge supplies of affordable homes available in the market right now. In fact, nationwide sales of residential properties are down by 25% in 2010 compared with 2009.

The lack of buying activity, even among cheap bank owned foreclosures and government repo homes, is also being attributed by analysts to potential buyers who have decided to remain on the sidelines and wait for further drops in housing prices. However, most analysts agree that any further decline will be minimal, if there will be any at all.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.

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