Confidence in the real estate market continues to grow in 2011, according to a recent study by a recent study by Realtor.com.
Nearly two-thirds (65 percent) of potential homebuyers surveyed by Realtor.com this month say they are likely to buy a home that’s been through the foreclosure process, compared with 25 percent in October 2009.
Many of these buyers end up buying traditional resales, but their confidence in the REO/bank-owned arena makes for a more confident general buying public.
Meanwhile, the vast majority of those looking at real estate owned (REO) properties planned to live in them — only 6.9 percent of potential homebuyers said they were looking to buy a foreclosure as an investment, down from 13.2 percent in October.
The “unexpected interest” in foreclosures is a result of reductions in supply, expectations that home prices will rise, and changing attitudes towards foreclosures, said Steve Berkowitz, CEO of Realtor.com operator Move Inc.