Foreclosure Homes Remain Unsold As Buyers Hesitate

Despite interest rates at almost record lows and the low prices of foreclosure homes, buyers remain reluctant in most areas of Indiana. November housing sales in certain areas of the state declined further, showing that most property buyers still lack confidence in the state’s housing market.

A big number of Indianapolis foreclosures and residential properties in various areas of the state remain unsold during the month. Even in smaller markets like Howard County, sales have slowed considerably when compared with previous year’s figures. Howard recorded a total of 65 residential property sales for the month, representing a 26.1% decline from November of 2009 when 88 homes were sold in the county. However, when year-to-date figures are considered, the total is still 3.1% better than 2009.

According to local realtors, most people are reluctant to buy even low-priced foreclosure homes despite interest rates at record lows because of the financial difficulties most Americans are facing. They added that even those who have found new jobs are afraid to put down money on residential properties. The slowdown in home buying has been going on for months ever since the federal government’s tax credit expired, realtors have reported.

Housing data showed that since the expiration of the credit, sales of Indianapolis foreclosures and non-foreclosure dwellings in various areas of the state have continued to decline. However, they also cautioned that the drop might not be as much as it appears since the previous year’s sales figures were likely inflated by the tax credit program. They added that it might take some time before the effects of the tax credit on housing sales recedes and figures can be evaluated more accurately.

Although sales declined in most of Indiana markets, prices did climb in several areas, including Howard County. Median selling price of homes in the county was pegged at $70,000 in November. This represents a 2.3% increase when compared with the same 2009 month. In terms of year-to-date price, the county posted a 5.7% rise compared with last year at $73,900. Realtors stated that the huge supplies of foreclosure homes in the area have created problems in terms of residential sales, consumer confidence and values of properties.