Tuesday, May 24, 2011

Foreclosure survey reveals - No housing market recovery until 2014

Trulia, an online resource for real estate consumers and RealtyTrac, a leading online marketplace for foreclosed properties have recently revealed the results of  an ongoing survey conducted by Harris Interactive, an international custom market research firm.

It was an online survey conducted in April 2011, among 2018 adults in the US.  Surveys like these usually reveal the public confidence levels in the marketplace.  54% believe the housing recovery will not happen until 2014 or later.  What is even more interesting, since this is an ongoing survey, is that the same number for November 2010 was 34%.  The last six months have further reduced the expectations for a earlier recovery - to see more details of the survey read Trulia's press release.  

The foreclosure certainly affect the market prices in a significant way - but results are not the same across the country.  A heat map on RealtyTrac website shows the US foreclosure numbers by state.  Good news is that Pennsylvania is somewhere in the middle of the continuum.  Foreclosed properties as a % of the total housing on sale is relatively low, compared to a lot of west coast states, and troubled states like Michigan and Florida.  While the April 2011 national average is 1 in every 593 housing units, the numbers for Chester county are 1 in 1809 units and those for Downingtown are 1 in 2810 and those for Chester Springs are 1 in every 1308.  The areas affected by higher foreclosure are Pottstown, Coatesville, Phoenixville and a few others.

I still believe it is a great time to buy if you intend to hold on to the property for atleast 4 years!  The interest rates may not remain below 5% for long and the inventory that buyers have to choose from is still very high a great time to get in if you have not taken advantage already.  For those of you waiting for the prices to bottom out - the bottom is always a historical figure given in hindsight. 

More market insight articles on my blog.
Technorati tag - Downingtown real estate 

When do YOU think the market will recover?

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