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Alabama Prices Encouraging to Investors Flipping Foreclosure Homes

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By : John Cutts    99 or more times read
For investors flipping foreclosure homes, Alabama would have been a preferred destination during the month of November 2010 as the state's housing unit prices declined by over 10% and recorded the second biggest depreciation for residential prices among key markets in the U.S.

In November, combined price of non-foreclosed houses and foreclosures in Birmingham, AL and in the rest of the state fell by 11.2% when compared with the same 2009 month. When it comes to prices of non-foreclosed properties alone, the decline was 7.8%. The state came in second among all 50 U.S. states in terms of price depreciation for the month. Only Idaho had a higher depreciation percentage than Alabama in November 2010 at 13.6%.

Compared with national trends, the prices of ordinary dwellings and foreclosures in Alabama did poorly in November. National pricing levels dropped by 5.1% during the month and by 2.2% when distressed property sales were taken out of the equation. November 2010 also marked the fourth month in a row that prices of homes have declined in the country.

For people who are into flipping foreclosure homes, November was a month when they could have acquired properties at prices lower than they usually are. However, not a lot of housing unit sales were recorded during the month. According to housing market analysts, a drop in housing sales is typical during the last few months of every year, but they also stated that it signifies a difficult road for the housing market in terms of recovery.

Meanwhile, data from several other sources showed a rise in the price of foreclosure homes for sale and non-foreclosed dwellings in the city of Birmingham during the month of November 2010. The Birmingham Association of Realtors revealed that the average price of houses in the metro area rose by 4%, while median rates jumped by 5% during the period. However, year-by-year housing unit sales recorded a fall of 30%, according to the association.

Analysts stated that although number of investors flipping foreclosure homes did come into the market to take advantage of the low prices, sales figures still recorded significant declines, mainly because 2009 sales totals were inflated by the federal government's tax credit program.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.

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