A recent surveyed revealed that over 60% of homebuyers would be open to purchasing a home through auction.

With the residential market remaining competitive and listed inventory still short, young homebuyers may be viewing auctions as viable alternative pathways to homeownership, according to new data from ServiceLink. The fintech’s newly released survey revealed that more than three of five consumers (62%) are open to buying a home at auction — with that share rising as generations get younger. Seventy-five percent of millennials in ServiceLink’s survey said they would consider purchasing a home at auction compared to 65% of Gen-Xers and 54% of baby boomers. In fact, while ServiceLink’s data indicated that 10% of U.S. consumers have bought a home at auction, that share more than doubles to 21% when narrowing the focus to just millennials. Moreover, 13% of Gen Z consumers have bought a home at auction, suggesting that the youngest generation of house hunters is also open to the process, compared to just 6% of Gen X and 4% of boomers. ServiceLink’s numbers come as more homes are anticipated to hit the auction block in the coming months. While industry observers have said that a foreclosure wave is unlikely, the expiry of the foreclosure moratorium is nonetheless expected to result in some level of distress.  "It's not surprising that millennials are pursuing new opportunities to achieve homeownership, particularly in the current real estate market where they are facing challenges due to high prices and low supply," said Miriam Moore, president of default services at ServiceLink. Despite the openness of younger generations to buy homes at auction, a greater opportunity for awareness does exist. More than one in four consumers (28%) don’t know that you can buy a home at auction.

Source: Scotsman Guide