This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Demand For Foreclosures Triples Among Homebuyers

Stocks in this article: MOVE

CAMPBELL, Calif., May 30, 2012 /PRNewswire/ -- Interest in buying foreclosures has almost tripled among potential home buyers in the past two and half years, and 92.1 percent of those buyers plan to live in them rather than use them as investments, according to a new national survey released today by This suggests the stigma once associated with buying a foreclosure as a home has faded, and significant demand among potential owner occupants has developed for the more than 1.5 million foreclosures that accumulated leading up to the recently signed 49 state Attorneys General Agreement. is the #1 homes for sale site operated by Move, Inc. (NASDAQ: MOVE), the leader in online real estate.

According to the survey, homebuyer interest in foreclosures jumped 159 percent since October 2009 when foreclosures accounted for 29 percent[i] of all home sales. In fact, more than two-thirds (64.9%) of today's homebuyers said they're likely to buy a foreclosure compared to 25.3 percent two and a half years ago. Only 6.9 percent of today's potential home buyers are interested in buying a foreclosure as an investment, down from 13.2 percent in October 2009.

'We see a combination of factors coming into play explaining the unexpected interest in foreclosures," said Steve Berkowitz, chief executive officer of operator Move, Inc.  "Reductions in supply, expectations that home prices will rise, and changing attitudes towards foreclosures are contributing to the increased demand, especially among owner-occupants.  As lenders begin processing their distressed inventories and releasing them for sale at the local level, we look to them to move carefully and monitor conditions so recently gained home values aren't diminished."

CONCERN POST-SETTLEMENT FORECLOSURE WAVE WILL LOWER HOME VALUESThe survey found that more than half of all Americans (55.7%) are concerned the more than 1.5 million backlogged foreclosures expected to be released by major lenders will lower home values in their markets. Midwesterners (62.2%) are more concerned than those in other regions while people in the Northeast are least concerned (42.8%). The majority of backlogged foreclosures are expected to be released in the 26 judicial states that require court orders before distressed properties can be processed and released for sale. Many judicial states are located in the Midwest and Northeast. Homeowners (56.1%) and non-homeowners (54.5%) are equally concerned.

FEAR OF FACING FORECLOSURE DECLINES, NO IMPROVEMENT SEEN IN FORECLOSURE PICTUREAs the stigma associated with buying a foreclosure has declined in the past few years, so has the fear of losing a home to foreclosure.  Today, approximately one third of Americans (34.9%) fear they or someone they know will face foreclosure in the next year, down -33.5 percent from March 2009 levels when 52.5 percent expressed this concern.  Fear of facing foreclosure today is greatest among those earning less than $30,000 a year and slightly higher among non-homeowners (38.6%) than homeowners (33.6%).

While foreclosure activities have declined 34 percent[ii] in the past year, most Americans say they haven't seen improvement in the foreclosure situation where they live. The survey found most Americans (49%) think the foreclosure situation is about the same as it was last year, while close to one in six (17.6%) say the foreclosure situation is worse.  Only 21.3 percent think the foreclosure situation in their market is better.  Foreclosures have in fact declined by 34 percent in the past 12 months.

1 of 2

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,856.24 +78.09 0.44%
S&P 500 2,073.80 +12.57 0.61%
NASDAQ 4,772.9150 +24.5190 0.52%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs