More People Show Interest in Buying Houses at Foreclosure Auctions

More people are said to be showing interest in buying houses at foreclosure auctions and at other regular home-buying channels in Chicago, Illinois. Although sales and home prices continued their decline in February of this year, realtors reported that optimism is high among sellers as buyers showed increased interest in making a purchase.

Although prices are still in a slump, with most buyers able to acquire properties at prices that are almost like having free foreclosure homes in Chicago, realtors stated that there is a possibility that the spring season will bring the first sustainable recovery in the region's housing market. Signs of improvement are there, realtors asserted, with pending sales in February reaching their highest levels since April of last year.

Also, realtors are reporting multiple offers for foreclosures for sale in Illinois and other residential properties, with open houses also reporting increased traffic. Analysts have claimed that although this interest did not manifest in actual sales during the first two months, the coming spring buying season will likely reflect the optimism. According to them, buyers are moving out of the sidelines and entering the market, prompted by several developments that favor purchasing now than later.

Analysts asserted that buying houses at foreclosure auctions will soon pick up, mainly because buyers who have waited have mostly noticed that although interest rates are still low, there are signs that they will be rising soon. Also, rental rates are starting to rise, which could convince a huge percentage of renters to become homeowners instead of tenants. News that down payments will increase further in the coming months is also propelling a lot of buyers to look at what is available now.

In addition, homes are currently at their lowest price levels, with most properties found at free foreclosed homes for sale listings having asking rates never before seen in the market. These prices though, might increase at any given time since the economy and the job market are showing signs of improvement. Those who have delayed purchases last year might get tempted to buy now before prices rise, analysts further said.
Sales of homes in Chicago went down by 8.8% in February of this year compared with one year ago and also posted a drop of 2% month-over-month. However, analysts believe that the number of people buying houses at foreclosure auctions will rise in the coming months as homebuyers try to take advantage of bargain prices and low interest rates before they disappear.