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Buyers Take Advantage of Short Sale Foreclosures in Alabama

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By : John Cutts    99 or more times read
With thousands of short sale foreclosures and distressed homes for sale being offered in various areas of Alabama, it is no surprise that prices of residences have declined to a level that makes the market an ideal place for residential property buyers willing to shell out some dollars.

According to state housing industry figures, residential properties sold in the state jumped during the month of August, with Birmingham foreclosure homes and distressed properties in other key areas of the state getting snatched by buyers in higher numbers than at any time since the housing market crisis started more than two years ago.

Housing data showed that almost 3,000 regular houses and foreclosures in Alabama were sold during the month of August, representing an almost 4% increase when compared with July, wherein a total of 2,885 homes were purchased by buyers. The rise in sales numbers was largely due to the decline in prices, with homes having an average selling price of $145,579 during the month of August.

According to housing market analysts, short sale foreclosures and low-priced residences account for a big percentage of the homes-for-sale market. The average price of homes for August is considerably lower than the July average price of $150,678, which resulted in more home buyers willing to let go of more cash to take advantage of the cheaper prices of dwellings.

Buyers who have the money to make a purchase are taking advantage of the fact that more owners are losing houses to foreclosure. Some buyers have reported that this gives them a chance to look for a better house than what they currently own for a much lower price. They added that they were encouraged to buy because houses for sale are newer and interest rates are lower.

Housing industry observers have stated that although the huge supplies of low-priced dwellings are creating an ideal market for buyers, the trend is not good for the residential property industry in general. They claimed that the huge supplies of cheap homes are dragging property values down.

Most realtors believe that the residential property industry will not get better until short sale foreclosures and distressed property numbers are cut down. They added that improvements in the job market are also needed for the state's residential industry to recover.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.

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