Number of Foreclosure Shoppers Down?
Anchorage Real Estate Blog
According to Inman news, the number of potential home buyers interested in Foreclosed Properties has declined since May of this year. The resultes of a survey, taken every six months, through Trulia.com and RealtyTrac show that 43% of the 2,203 adults surveyed would be at least somewhat likely to purchase a foreclosure. This is a decline from May's results which showed that 55% of adults surveyed would at least considering purchasing a foreclosed property.
Some common reasons why people are less interested in Forclosed properties include the riskiness of the transaction, hidden costs, unforeseen repairs, and fear of the loss of value after the home purchase. According to a top excutive of RealtyTrac, the concern of a home losing its value is not a surprising one. He predicts that the housing market will continue to be volatile in 2010. "Unfortunately, prices may well decline, so that's a realistic view. And there are significant hidden costs. The process takes longer (for foreclosures) and the cost of improvements is also a factor," said Rick Sharga, senior vice president of RealtyTrac.
Forclosed properties are usually in pretty poor condition and need at least cosmetic work, if not more. Prices often reflect the need for repairs so a good deal can be found in Foreclosures if someone is willing to take the risk and do the work to turn the property into a liveable home. "U.S. foreclosure properties are, on average, a 33 percent discount compared to nondistressed homes for sale," said Pete Flint, chief executive officer for Trulia. "So people have to figure out if the discount is enough to account for these drawbacks."
Alaska is the second state for the lowest amount of foreclosures. The foreclosure rate in Anchorage is less than 2% of the current inventory. For a list of the Foreclosed Properties in Anchorage, contact Vanna today.
Vanna Siackhasone, Anchorage Real Estate Specialist, 907-720-4663
