With a backlog of empty homes sitting in the housing market, which are the results of numerous foreclosures across the nation, there are many analysts who feel that homeowners who may be in the market to purchase a home could benefit from buying one of these foreclosures as there are indications that some homebuyers are taking advantage of foreclosure sales and current interest rate levels on home loans to find an affordable property. One of the main reasons behind these ideas of affordability concerns the fact that home prices have decreased sharply over the past months, which in some cases has led to foreclosures but has also offered low-cost homes which can be bought by potential homeowners.
While there are some experts who feel that foreclosure sales are expected to rise in 2011, there are still concerns over falling home prices as some areas have predicted that property values could decrease further in the coming months despite the fact that some officials feel that the housing market has, for the most part, hit bottom. A report on HousingWire.com stated that, “Home prices in 23 U.S. metropolitan areas fell 2.2% in December, the largest one-month drop for fiscal 2010, and a sign that foreclosed properties continue to weigh down home values across the nation.”
Obviously, the opportunities that some homebuyers have for purchasing one of these foreclosed properties, which many viewed to be a positive for potential homeowners in the near future, is also one of the main reasons that home prices continue to drop or have substantially fallen over the recent months. Many homeowners who have faced financial strains in their lives have gotten to a point where they simply can no longer afford their home, in spite of various foreclosure prevention efforts that have been offered to many in the hopes of avoiding foreclosures in numerous states.
Yet, with so many homes sitting empty, there are more decreases in home values being seen and larger cities, but this is also creating an environment where homebuyers do have the option of getting an incredibly affordable mortgage, if they can qualify and simply take the leap into the housing market. It goes without saying, not all homebuyers may be in a financial position to take advantage of these foreclosure sales, may not be in a financially stable position to afford the costs of home buying or monthly mortgage payments, but for those who may have been on the fence about buying a new home due to concerns, these low home prices, coupled with low interest rates on mortgages and more confidence on the part of some consumers could lead to more affordable home buying opportunities in 2011.
Those who are considering buying a foreclosed home have often been advised to simply research not only what may be available in their area, but home loan offers from multiple banks, review their finances to make sure they can afford closing costs and other fees, as well as, an affordable interest rate, and obviously research what the future of housing may hold in their particular area, as some homeowners may find that certain areas are predicted to drop in value further before they begin to see any form of repair.