Buyers Show Increased Interest in Foreclosed Homes for Discounts
American buyers are increasingly turning to foreclosures in search of more affordable housing options. Page views for foreclosure listings have significantly increased, according to Realtor.com.
U.S. buyers are increasingly scrolling through foreclosure listings as they seek more affordable housing options, according to a new report from Realtor.com. Foreclosure listings received over 26% more page views than average listings in the first half of the year.
Joel Berner, senior economist at Realtor.com, stated that foreclosures offer a path to a meaningful discount in a market where affordability remains a key challenge. The report found that the median foreclosed home sold for 27% below its estimated value.
This rise in interest in foreclosures indicates shifts in the housing market, including increased buyer leverage and falling listing prices. However, the number of foreclosures has not surged dramatically compared to historical crises.
Berner explained that the current increase is due to the winding down of pandemic-era forbearance and moratorium programs, impacting homeowners who bought at peak prices and are now facing higher insurance, taxes, and adjustable-rate payments. Markets like Lake Charles, Louisiana, are seeing a more notable uptick in the share of foreclosures.