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Huge Supplies of Tax Lien Foreclosures Create Buyers' Market

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By : Scott Zahid    99 or more times read
The high number of residential bank foreclosures and tax lien foreclosures in Iowa has made it a buyers' market in 2010. According to realtors, a homebuyer can make a choice out of around 80 houses that satisfy his personal requirements in just one community last year, showing how far the housing market has plummeted since the start of the foreclosure crisis around four years ago.

For buyers, having tons of foreclosed homes Clinton IA and distressed properties from other areas of the state to choose from is a good thing. However, this scenario is not so good for sellers. Housing industry experts have stated though, that the state's housing industry will improve for sellers in 2011. According to them, home prices in Iowa City alone are expected to increase by 3.2% this year.

Despite Iowa foreclosures remaining at high levels, analysts are optimistic that areas like Cedar Rapids, Davenport and Des Moines will post price increases during the year. Des Moines and Cedar Rapids are projected to post price increases of around 2.6% this year, while Davenport homes are expected to appreciate by around 2.5%.

Last year, the average selling price for non-foreclosed and bank and tax lien foreclosures in the area was at $194,306. The price was lower than the 2008 average of $204,346 and lower than the 2009 average price of $198,112. Housing units sold in Iowa last year declined by 17.5% when compared with four years earlier.

According to realtors, prices are being weighed down by the huge amount of residential properties under foreclosure listing that are being sold at heavily discounted rates. They also reported that sellers faced tough competition last year in terms of getting buyers' attention, and most of them were forced to lower prices or spend a lot of money improving the looks of properties to secure a sale.

The low interest rates also favored buyers, with rates for a 30-year fixed loan dropping to as low as 4.75 last year. Another benefit that homebuyers were able to enjoy in Iowa in 2010 was the availability of financing. Buyers of tax lien foreclosures and other existing dwellings in Iowa found it easier to secure loans in the state compared with other regions of the U.S.

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