While the U.S government is taking severe measures to bring down the surge of foreclosures in the country, the real estate market is witnessing a very strange trend with first time home buyers opting for foreclosed homes in huge numbers. One of the major reason for this new shift in buyers and real estate investors is that the highly affordable prices of foreclosures for sale have opened a new opportunity for the mid income families as well as young professionals who have been encouraged to buy properties of their own instead of opting for rentals. This entry of a whole new buying group in the real estate market has therefore brought the sales to an all time high this year.
According to the news reports released by online real estate agencies, the increasing number of foreclosures in the country has had a negative and a positive outcome on its economy. While on one hand home owners are struggling to repay loans and avoid repossessions, the properties that are being foreclosed by banks and various mortgage companies are being taken up by families that could have otherwise found them extremely unaffordable.
At present South Florida has become one of the most favored real estate hubs in the country and has recorded a surge in home sales by 20% as compared to last year. Interestingly most of the residences that have been sold over the last month have been picked up by mid income family groups which include 85% of first time home buyers. A similar trend is also being witnessed in the Nevada region which has recorded an increase in real estate sales by 12% as compared to the previous year with foreclosures comprising the majority of the homes sold. While both the above regions have always been a prime real estate area, the interesting factor is that the region has attracted modest budget buyers for the very first time which is entirely due to the availability of low priced foreclosed homes.
According to one of the senior analysts at Metro – Study, most banks such as the Bank of America and mortgage giants like Fannie May are decreasing the selling prices of foreclosures by high reductions in order to clear off their inventory and recover some of their losses in the process. Metro- Study has also found out that prime waterfront housing areas of Coastal California as well as that of Florida has been witnessing a high sale in properties amongst which 80-95% are foreclosures which are being sold through public sales and auctions at highly attractive prices.
A new real estate market study has also pointed out to the fact that as bank inventories all over the U.S continue to grow with foreclosures, the real estate prices will steadily plummet down which will attract more and more modest budget buyers towards these lucrative investments.

This entry was posted on Tuesday, August 10th, 2010 at 12:49 pm and is filed under Foreclosure News.