Foreclosed Houses Not Selling as Expected

Foreclosed houses are not selling as expected. Rising joblessness has shied off potential buyers. According to a recent poll over half the number of would-be buyers are cautious about investing in property as they are haunted by a fear of losing jobs.

Unemployment figures have broken a 26 year old record. 53% of those who were thinking of buying a home in the near future have become cautious and said that they are not prepared to take the step immediately. The survey figures were released by Realtor.com.
A third of those surveyed said that their main worry centred on their jobs. 16% of the potential purchases said that they were unable to opt for another home because they were unable to sell their present one. 8% feared that the real estate market would continue to fall.

Most of the citizens know that there are bargain deals to pick up in the housing market but the financial pinch is biting too hard to make hem even think about investing. Mark Wells of Ohio who recently lost his job is looking desperately for another while his wife is working for $8 per hour in a day care centre. He said, “If I was able to buy, I’d definitely buy because this is the time to do it.” Two years previously he managed a short sale and has been living in rented quarters since then.

Some were interested in buying now because they felt that the price of houses would not further drop. They are waiting for more government incentives to give them the push. About one out of the prospective purchasers said they were keen on the foreclosed houses that were heavily discounted. 15% are waiting for tax concessions for the first time purchasers or for similar incentives coming from the states.

Chris Chaffe of Massachusetts is looking for a vacation home with a lake view. Houses that were once priced at $500,000 are now going for about $300,000. Chaffe and his wife are not prepared to hurry as they do not think there will any further dramatic increase in prices. He said, “It’s a great time to look around. we’re trying to keep our eyes open to any foreclosures.”

Although the market is thick with foreclosed houses two thirds of the surveyed are unlikely to opt for foreclosed units because of the slow dealing process and the hidden high repairing costs.