A recent study conducted by Realtor.com has revealed that the demand for foreclosures in the last two and a half years has tripled as people look for cheap homes to not only invest in but to also reside in. While the growth itself is not surprising, what is surprising is the fact that an incredible 92.1 percent of the people interested in foreclosures now want to live in them as opposed to investing in them.
According to the research conducted by Realtor.com in October 2009, foreclosures accounted for only 29 percent of all home sales in the country. Furthermore, since 2009 the interest amongst homebuyers in cheap homes and bank foreclosures has spiked by an unbelievable 159 percent.
It is also worth mentioning that, as of now, around 64.9 percent of today’s potential homebuyers have stated that they are likely to purchase foreclosures. This is in direct contrast to 2009 when only 25.3 percent of people had stated this. In addition to this, Realtor’s survey also revealed that only a paltry 6.9 percent of potential foreclosure buyers today are interested in buying these cheap homes for investment purposes. This means that interest in foreclosures as investment properties has dropped to the tune of 6.3 percent in the last two and a half years.
As per the Chief Executive Officer of Realtor.com, Steve Berkowitz, the change in statistics is a result of a wide variety of factors. Even so, he did specify three major causes for these statistics, and they are:
- Projections of improvement in the real estate market
- Reduction in supply
- Changing attitudes that used to cast foreclosures in a negative light