Crashed Market Opens Doors for New Homeowners

Foreclosed homes affordable to middle-class families

By Gabriel Winant, Newser User

Posted Apr 3, 2009 8:37 AM CDT

(Newser) – Since the real estate market collapsed, buying a home has become possible for middle-class families for whom it was previously out of reach, the New York Times reports. Taina Goldman, a Miami nurse, recently paid $187,000 for a house worth $370,000 three years ago. And she’s not alone. Sales of existing homes actually rose 5.1 percent in February, driven mainly by the sale of foreclosed houses.

Jennifer Vaughn bought a new house in Homestead, Fla., for $87,000. “I’m going to stay for five or six years at least, and I’m sure prices will go up somewhat by then,” says Vaughn. “It’s like the best feeling. I never thought I could own.” There is a tinge of sadness, Goldman adds. “It’s unfortunate that I have to build my happiness on top of tears.”

[Images (3)]

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Realtor Marc Joseph shows potential real estate buyers a map of the area as they ride by pontoon boat to view vacated properties Thursday, March 26, 2009 in Cape Coral, Fla. (AP Photo/Chris O'Meara)

A foreclosed home that is for auction is shown Friday, March 6, 2009, in the Queens borough of New York. The property is scheduled to be sold at a foreclosure auction Sunday, March 8, in New York. (AP Photo/Frank Franklin II)

PMZ Real Estate Agent Michelle Zeiter, left, walks into a bank owned home she is showing to clients Maurice McJimsey, center, and Irene Mello in Stockton, Calif., Friday, March 13, 2009. (AP Photo/Marcio Jose Sanchez)

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A lot of the banks have adjusted their thinking. If they show they have the ability to repay — imagine that — then the bank helps. - John Ahlbrand, a real estate agent who with his wife, Ruth, owns ReMax Central in Las Vegas

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Crashed Market Opens Doors for New Homeowners