Thursday, May 31, 2012

About foreclosures: do these figures match?

@HousingWire reports that, per Realtor.com, nationally, among people planning to buy homes, "more than 64% of homebuyers say they are likely to acquire a foreclosure, up from only 25.3% two and a half years ago," and, among those looking to buy foreclosures, 92% plan to live in what they buy.

Then here's the Woodstock Institute (@WoodstockInst) quoting the Institute for Housing Studies at DePaul saying that, for Cook County, Illinois, "Nearly 70 percent of residential property sales were completed using cash in high-foreclosure areas in 2011, compared to roughly 30 percent of residential sales in low-foreclosure communities."

So, hm, apples and oranges in a bunch of ways, but if we assume a cash purchase is likely to be an investment in property for a rental, and if we assume the would-be buyers who talked to Realtor.com were realistic about their intentions -- well, then, don't the figures point different directions re: whether foreclosure buyers are planning to be landlords or residents?

Or, if the figures from the two studies can be reconciled, is it because investors are specifically doing their intense buying-up in neighborhoods that are already worst off, to the point where high-foreclosure neighborhoods around Chicago are completely atypical of the U.S. as a whole?

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