Confidence Over Investing in Bank Foreclosed Properties Improves

by on Real Estate Investing

More people in the U.S. consider investing in bank foreclosed properties and in other real estate a sound move, with majority expecting property values and the whole real estate market to recover soon. A survey showed that nearly 70% of potential sellers and buyers believe that the coming two years will herald a stronger property industry.

The survey has local implications as Seattle foreclosures have risen in number in the past year with not much buying and selling occurring. This has left the market with excess inventories of unsold properties. With confidence high among consumers, realtors can look forward to more buying and selling activities in the next two years. The survey showed that 68% of respondents expect property values to improve between now and 2012.

The result was much higher than an April 2010 survey, which showed that only 47% believed that home prices would improve. The latest study, conducted in January 2011, also revealed that 86% of respondents look at real estate as a sound investment despite the volatility that has characterized the market in the past years. Almost 60% stated that they are interested in purchasing properties in the coming two years. Locally, a big number of buyers have reportedly expressed willingness to purchase non-foreclosures and bank foreclosures in Washington.

Meanwhile, around 59% viewed the market in an optimistic light, citing the improving economy as a primary factor. Another 89% reportedly stated that investing in bank foreclosed properties or buying a home at a much lower price are possibilities that the current market offers. According to housing market analysts, the survey proved that majority of Americans still believe that the housing industry will recover from the crisis and that prices will improve in the next two years.

However, it also highlighted people's differing opinions about buying and selling. Analysts stated that numbers showed that more people are ready to buy a foreclosure property for sale or a non-foreclosed dwelling, but the number of those who feel confident about being able to sell their properties is much lower. Results from the survey showed that 77% of people trying to sell their houses are not sure whether they will get a reasonable price for them.

Confidence in investing in bank foreclosed properties and in non-foreclosed real estate seemed to be stronger than the belief that selling properties will provide returns. Analysts stated that lack of confidence in the property selling market is just one of the factors hindering the real estate market from fully recovering.