{"id":6299,"date":"2008-12-28T13:05:29","date_gmt":"2008-12-28T20:05:29","guid":{"rendered":"http:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/?p=6299"},"modified":"2008-12-28T13:06:05","modified_gmt":"2008-12-28T20:06:05","slug":"us-adults-may-not-want-foreclosed-homes-but-homebuyers-sure-do","status":"publish","type":"post","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/6299\/us-adults-may-not-want-foreclosed-homes-but-homebuyers-sure-do\/","title":{"rendered":"“U.S adults” may not want foreclosed homes, but homebuyers sure do"},"content":{"rendered":"

This is my column for this week from the Arizona Republic<\/i> (permanent link<\/a>).<\/p>\n

 
“U.S adults” may not want foreclosed homes, but homebuyers sure do<\/strong><\/p>\n

Did you see in the news where only 47% of U.S. adults would consider buying a foreclosed home?<\/p>\n

An amazing number, isn’t it? What does it mean?<\/p>\n

Almost nothing, of course. The real estate market in Phoenix, along with many, many other cities, is dominated by foreclosed homes right now. They are virtually all that is selling.<\/p>\n

So how could so many homes be selling if so many people are averse to buying them?<\/p>\n

This is a nice lesson in the uselessness of public opinion polls. “U.S. adults” are not homebuyers. Homebuyers are homebuyers. Asking U.S. adults how they feel about sushi or blackberry wine will tell you nothing about their sales, either.<\/p>\n

What the survey does tell us is that the news has gotten out about the sometimes difficult process of buying a foreclosed home — especially a short sale — and about the often dismal condition of those homes.<\/p>\n

And yet, foreclosed homes are selling and virtually nothing else is.<\/p>\n

Why?<\/p>\n

Because they’re cheap, that’s why. Even in the nicest neighborhoods, a lender-owned home will sell at a discount of 50% to 80%, compared to owner-occupied homes. In not-as-nice communities in the West Valley, you can pick up a stucco-and-tile 3 bedroom, 2 bath, 1,500 square foot home with a two-car garage for $50,000.<\/p>\n

As I write this, there are 120 homes like that, all built 1995 and later, listed for $75,000 or less.<\/p>\n

Let the price rise to $100,000 and there are 690 available right now.<\/p>\n

Last month, 191 of those homes sold for $100,000 or less. That’s an implied absorption rate of 3.61 months, arguably a seller’s market.<\/p>\n

So on the one hand an undifferentiated population of U.S. adults, who may or may not be in the market to buy a home, has a generally negative opinion of foreclosed homes.<\/p>\n

And on the other hand there is a land-office business in foreclosed homes.<\/p>\n

We will see many years’ worth of foreclosures in our market. How we feel about that in the abstract makes no difference.
\n<\/p>\n

Technorati Tags: arizona<\/a>, Read more<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

This is my column for this week from the Arizona Republic (permanent link).  “U.S adults” may not want foreclosed homes, but homebuyers sure do Did you see in the news where only 47% of U.S. adults would consider buying a foreclosed home? An amazing number, isn’t it? What does it mean? Almost nothing, of course. […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_crdt_document":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[26,6,5],"tags":[],"class_list":{"0":"post-6299","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"hentry","6":"category-lending","7":"category-marketing","8":"category-real-estate","10":"no-featured-image"},"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":13136,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/13136\/those-who-can-not-learn-from-history-are-doomed-to-repeat-it\/","url_meta":{"origin":6299,"position":0},"title":"Those Who Can Not Learn From History Are Doomed To Repeat It","author":"Brian Brady","date":"September 2, 2010","format":false,"excerpt":"HUD announces it's \"First Look\" program today: The National First Look Program is a first-ever public-private partnership agreement between HUD and the National Community Stabilization Trust (Stabilization Trust). In collaboration with national servicers, Fannie Mae, and Freddie Mac, the First Look program is intended to give communities participating in HUD's\u2026","rel":"","context":"In "Lending"","block_context":{"text":"Lending","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/lending\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":15092,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/15092\/mine-mine-mine-are-defaulting-homeowners-criminals-when-they-take-the-stove\/","url_meta":{"origin":6299,"position":1},"title":"Mine, Mine, Mine! Are Defaulting Homeowners Criminals When They Take the Stove?","author":"Tony Sena","date":"September 12, 2011","format":false,"excerpt":"How many of you have seen foreclosed homes damaged or stripped of wall lighting, appliances, even kitchen cabinets, countertops, and toilets? I\u2019ve even seen homes stripped of their copper wiring (I mean, really?!)\u00a0 Indeed, we\u2019ve probably all at least heard stories of homes being damaged as the occupants depart after\u2026","rel":"","context":"In "Real Estate"","block_context":{"text":"Real Estate","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/real-estate\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":15768,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/15768\/dont-you-love-reading-all-that-good-news-about-the-the-phoenix-real-estate-markets-recovery-guess-what-youre-being-lied-to-as-always\/","url_meta":{"origin":6299,"position":2},"title":"Don’t you love reading all that good news about the the Phoenix real estate market’s recovery? Guess what? You’re being lied to — as always.","author":"Greg Swann","date":"March 21, 2012","format":false,"excerpt":"This is what's really happening: FannieMae and FreddieMac are holding foreclosed houses off the market, in anticipation of \"selling\" them to campaign donors. Meanwhile, the town is being picked clean, with prices being bid up by buyers convinced that houses are going out of style -- a story we've heard\u2026","rel":"","context":"In "Group Therapy"","block_context":{"text":"Group Therapy","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/group-therapy\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":11158,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/11158\/a-scary-thought-on-the-non-existent-shadow-inventory\/","url_meta":{"origin":6299,"position":3},"title":"A Scary Thought on the (Non-Existent?) Shadow Inventory","author":"Sean Purcell","date":"February 4, 2010","format":false,"excerpt":"The shadow inventory has been a topic of interest with almost every agent I talk to lately.\u00a0 Most believe it is large and few understand why it isn't in the marketplace rather than held by the banks.\u00a0 Russell Shaw recently wrote about the shadow inventory being gibberish.\u00a0\u00a0 It is an\u2026","rel":"","context":"In "Big Mother"","block_context":{"text":"Big Mother","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/big-mother\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-content\/uploads\/2010\/02\/Distressed-Mortgage-CHARTS.gif?resize=350%2C200","width":350,"height":200},"classes":[]},{"id":4880,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/4880\/if-you-have-cash-or-can-qualify-for-a-mortgage-this-could-be-the-ideal-time-to-grab-a-bargain-priced-home-in-the-phoenix-area\/","url_meta":{"origin":6299,"position":4},"title":"If you have cash or can qualify for a mortgage, this could be the ideal time to grab a bargain-priced home in the Phoenix area","author":"Greg Swann","date":"October 11, 2008","format":false,"excerpt":"This is my column for this week from the Arizona Republic (permanent link). \u00a0If you have cash or can qualify for a mortgage, this could be the ideal time to grab a bargain-priced home in the Phoenix area The Phoenix area is hosting a wave of real estate investors like\u2026","rel":"","context":"In "Investment"","block_context":{"text":"Investment","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/investment\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":9643,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/9643\/even-though-much-of-the-current-real-estate-news-is-really-just-hype-there-can-still-be-good-reasons-for-you-to-be-in-the-market\/","url_meta":{"origin":6299,"position":5},"title":"Even though much of the current real estate “news” is really just hype, there can still be good reasons for you to be in the market","author":"Greg Swann","date":"September 5, 2009","format":false,"excerpt":"This from my Arizona Republic real estate column (permanent link): Get a load of all that great housing news! Median prices are up! Sales volumes are up! The prognosis for the future? Up, up, up! Here's a different take: If it looks, walks and talks like hype, it's probably hype.\u2026","rel":"","context":"In "Investment"","block_context":{"text":"Investment","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/investment\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/6299","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/comments?post=6299"}],"version-history":[{"count":1,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/6299\/revisions"}],"predecessor-version":[{"id":6300,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/6299\/revisions\/6300"}],"wp:attachment":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/media?parent=6299"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/categories?post=6299"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/tags?post=6299"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}