Foreclosure Home Press Releases New Survey From Trulia And RealtyTrac Shows Investors, Trade-Up Buyers And Renters Most Likely To Consider Foreclosure Purchase

New Survey From Trulia And RealtyTrac Shows Investors, Trade-Up Buyers And Renters Most Likely To Consider Foreclosure Purchase

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88 Percent of Current Homeowners Looking to “Trade    Up” To a Larger Home Are Willing to Consider Purchasing a Foreclosure

SAN FRANCISCO, December 15, 2009 –  Trulia.com,    the best place to start a real estate search,    and RealtyTrac, the leading online    marketplace for foreclosure    properties, today released the latest results of an ongoing survey tracking    home buyers’ attitudes towards foreclosures. The new online survey    conducted on their behalf between November 5-9, 2009 by Harris Interactive® showed    a notable decrease in consumers’ willingness to buy foreclosed    properties, with 43 percent of U.S. adults age 18 and above indicating    that they are at least somewhat likely to consider purchasing a foreclosed    home in the future, compared to the 55 percent of U.S. adults age 18    and above surveyed online by Harris Interactive®  between May 1-5, 2009.    However, the survey also found that there is strong interest in certain segments,    including real estate investors, current home owners looking to “trade    up” to a larger property and renters. 

Listen to conference call with RealtyTrac SVP Rick Sharga and Trulia CEO and Co-Founder Pete Flint discussing the survey.

Real Estate Investors
In the difficult economic climate that currently exists, home  foreclosures present significant opportunities for many consumers, including  real estate investors. According to the survey, nearly one in four US adults  (23 percent) are at least somewhat likely to purchase a second home or investment  property, and of these, 92 percent are at least somewhat likely to buy  a foreclosed property. 

Trading Up
With the recently expanded housing  tax credit including a new $6,500 credit available to current homeowners  looking to purchase a new home or trade up, interest levels in purchasing foreclosed  properties will likely increase during the next several months. Currently,  24 percent of homeowners are at least somewhat likely to “trade up” to  a larger home, and of these, 88 percent are at least somewhat likely to consider  a foreclosed property, according to the survey. 

Renters
Renters are showing strong interest in buying foreclosed properties with 57  percent at least somewhat likely to purchase a distressed home in the future.  Additionally, younger adult renters are significantly more likely to purchase  a foreclosed home: 61 percent of renters  ages 18-34 and 65 percent of renters between the ages of 35-44 are at least  somewhat likely to consider purchasing a foreclosure compared to only 40 percent  of renters 55 years and older. 

Discounts & Opportunities
Consumers expect to get a lot for their dollar when purchasing foreclosed homes  and are willing to invest: nearly two out of three U.S. adults (65 percent)  expect a discount of 30 percent or more when buying a foreclosed property.  Respondents in the Northeast expected the biggest discounts, with 43 percent  expecting foreclosed homes to be discounted by 50 percent or more. 

“Even during the darkest economic times, dreams don’t die. Foreclosures  are providing never before seen opportunities for new segments of homebuyers  and allowing renters to become first time buyers, allowing investors to grab  great deals and allowing families to trade up to larger homes,” said  Trulia co-founder and CEO Pete Flint. “Until unemployment levels off  and starts to get better, we expect foreclosures to continue to play a big  role in the 2010 housing market.”

According to the survey, 95 percent of U.S. adults are willing to invest  money in renovations when purchasing a foreclosed property. Additionally, more  than half (55 percent) of respondents are willing to spend 20 percent or more  of the purchase price to make improvements on a distressed property. Trulia  found in a separate study that that the average person invests up to $30,000  when purchasing a new home for things  such as furniture, paint, hot water heaters, etc. As more consumers purchase  distressed properties, excess housing inventory levels will decrease and additional  money will be poured into other industries, helping to stimulate the economy  as a whole.

Unnecessary Negative Stigma
“The most active and qualified buyers in today’s market are highly  interested in foreclosures, which is not surprising given the discount that  often comes with a foreclosure purchase,” said Rick Sharga, senior vice  president of RealtyTrac. “It is somewhat surprising that consumers cite  hidden costs as the biggest negative aspect to buying a foreclosed home because  most bank-owned  foreclosure sales include the same title protections and other safeguards  that are in place for non-foreclosure sales. As myths such as this are put  to rest and consumers take more time to educate themselves on the process for  purchasing foreclosures, they will be able to take advantage of the great bargains  that currently exist in the real estate market.”

The November survey found slightly lower levels of negative sentiment towards  purchasing foreclosed properties; 81 percent  of U.S. adults compared to 85 percent in May 2009. Comparison of top concerns  among those who think there are negative aspects of purchasing a foreclosed  home between May 2009 and November 2009 surveys:

                                                               

        Negative Sentiment

May 2009

November 2009

Hidden Costs

71 percent

69 percent

Process is risky

46 percent

48 percent

Home will lose value

31 percent

35 percent

Most Likely to Buy Foreclosures

  • 57 percent of U.S. adults ages 18-34 are at least somewhat likely to consider    purchasing a foreclosed home, compared to a little less than one-quarter    of those ages 55 and older (24 percent).
  •  
  • Current renters (57 percent) are more likely to consider purchasing a foreclosed    home than current homeowners (38 percent).
  •  
  • One in two U.S. adults (50 percent) that are single/never been married    are at least somewhat likely to consider purchasing a foreclosed property    compared to 40 percent of adults that are married and 34 percent of adults    that are divorced/separated/widowed.

To listen to a replay of Pete Flint and Rick Sharga discussing the results  of the survey and other insights into the real estate market, click  here

For more information about Trulia or to experience the power of a Trulia search,  please visit http://www.trulia.com/.


For more information about RealtyTrac and to access its nationwide foreclosure  data, please visit http://www.realtytrac.com/.

This November 2009 survey was conducted online within the United States by  Harris Interactive via its QuickQuery(SM) online omnibus service on behalf  of Trulia between November 5-9, 2009 among 2,203 U.S. adults aged 18 years  and older. Results were weighted to be representative of the total U.S. adult  population on the basis of region, age within gender, education, household  income, race/ethnicity, and propensity to be online. This online survey is  not based on a probability sample and therefore no estimate of theoretical  sampling error can be calculated. For complete survey methodology, including  weighting variables, please contact Ken Shuman. The May 2009 survey was conducted  online within the United States by Harris Interactive via its QuickQuery(SM)  online omnibus service on behalf of Trulia between May 1-5, 2009 among 2,397  U.S. adults aged 18 years and older. Results were weighted to be representative  of the total U.S. adult population on the basis of region, age within gender,  education, household income, race/ethnicity, and propensity to be online. This  online survey is not based on a probability sample and therefore no estimate  of theoretical sampling error can be calculated. For complete survey methodology,  including weighting variables, please contact Ken Shuman. 

About Trulia, Inc.
Trulia, Inc. has revolutionized real  estate search by offering a rich, intuitive user experience to help consumers  find homes for sale, track local price  trends, compare properties and neighborhood  data all at the hyper-local level.  Trulia  Voices, the largest real estate  community on the web, allows home buyers, sellers, agents and real  estate enthusiasts to ask questions, receive advice and blog on topics  such as the buying and selling process, foreclosures, refinancing and  more. Trulia’s user-friendly search can also be accessed  on more than 170 websites as a result of our media partnerships. Trulia  has received a number of awards, including the 2009 Webby Award for real  estate. For more information, visit http://www.trulia.com/.

About RealtyTrac Inc.
RealtyTrac (http://www.realtytrac.com/) is  the leading online marketplace of foreclosure  properties, with more than 1.5 million default, auction and bank-owned listings  from over 2,200 U.S. counties, along with detailed property, loan and home  sales data. Hosting more than 3 million unique monthly visitors, RealtyTrac  provides innovative technology solutions and practical education resources  to facilitate buying, selling and investing in real estate. RealtyTrac’s foreclosure  data has also been used by the Federal Reserve, FBI, U.S. Senate Joint  Economic Committee and Banking Committee, U.S. Treasury Department, and numerous  state housing and banking departments to help evaluate foreclosure  trends and address policy issues related to foreclosures.

About Harris Interactive
Harris Interactive is one of the world’s leading custom market research  firms, leveraging research, technology, and business acumen to transform relevant  insight into actionable foresight. Known widely for the Harris Poll and for  pioneering innovative research methodologies, Harris offers expertise in a  wide range of industries including healthcare, technology, public affairs,  energy, telecommunications, financial services, insurance, media, retail, restaurant,  and consumer package goods. Serving clients in over 215 countries and territories  through our North American, European, and Asian offices and a network of independent  market research firms, Harris specializes in delivering research solutions  that help us – and our clients – stay ahead of what’s next.  For more information, please visit www.harrisinteractive.com.
 
  Trulia Media Contacts:
  Ken Shuman, kshuman@trulia.com, 415-517-7211
 
  Paul Loeffler for Trulia, paul@sutherlandgold.com, 510-593-6765
 

RealtyTrac Media Contacts:
Michelle Schneider
949.502.8300 Ext. 139
michelle.schneider@realtytrac.com

Christine Stricker
949.502.8300 Ext. 268
christine.stricker@realtytrac.com

Detailed &  Historical Data:
Tyler White
949.502.8300 Ext. 158
tyler.white@realtytrac.com




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