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Dreams Don’t Die

“Even during the darkest economic times, dreams don’t die.”

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Even in East Atlanta’s  Sun Valley, where I took this photo, one man gathers what another man spills. (note the “Zone 6” tag on the apartment building…as Gucci Mane says, and as I say to real estate investors ”meet me in da 6”)

“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. Until unemployment levels off and starts to get better, we expect foreclosures to continue to play a big role in the 2010 housing market.”

Pete Flint, the intrepid CEO of Trulia said that. His comments accompany the latest survey that reveals insights to how consumers feel about purchasing a foreclosed property.

“We are seeing a drop in the enthusiasm and excitement that the homebuying audience has expressed in prior quarters for foreclosure purchases…What we’re looking at is something that should be anticipated and should really be expected. We’re looking at a fairly typical adoption curve, where some of the early enthusiasm about something new has waned.”

Rick Sharga, SVP of Realty Trac, said that. Realty Trac and Trulia have just completed their fourth survey – it “showed a notable decrease in consumers’ willingness to buy foreclosed properties. Of adults in the United States ages 18 and above, 43 percent indicated that they are at least somewhat likely to consider purchasing a foreclosed home in the future.” That’s down a good bit from the last survey – all of the details are here in the best mortgage industry news website that I know of, DSNews.com!

Foreclsoure sales by price range

In the Intown Atlanta territory that I cover, foreclosures have added a negative effect to an already weaker market and represented 42.1% of all sales in the <$200K price range during 3Q 2009.

That is what dreams are made of for cash investors and first time home buyers!

The percentage of total sales that were foreclosed properties was lower in 3Q 2009 than in 3Q 2008, representing the first time year-to-year comparisons have been lower in several months – we are watching this trend quarter by quarter and it is interesting to see if some of the negative perception trending that the Trulia / Realty Trac survey reveals, may be a part of the reduction in foreclosure purchasing activity.

With mortgage interest rates as low as they are, and with plenty of inventory in many submarkets of Intown Atlanta and Decatur, I expect that 2010 will offer more of the same for opportunistic purchasers!

I’ll let Pete Flint wrap this up with his 2010 prediction: “I predict that sales volume will be roughly flat, compared to 2009. Unfortunately, I see house prices continuing to drop another 5 to 10 percent. Also, inventory levels will creep back up, and mortgage rates will move into the range of 6 percent.”

Buyers – if you are having a a real estate dream, then now is the time to make it come true.

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