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Bank and Federal Foreclosures Selling Better than Non-Foreclosures

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By : John Cutts    99 or more times read
Majority of the housing markets in Alabama are reportedly driven by bank and federal foreclosures. Realtors have reported that sales of foreclosed dwellings are outpacing resales and non-foreclosure sales.

According to realtors, the huge supplies of foreclosed residential properties, including Huntsville foreclosure homes, AL, have created a buyer's market, particularly in areas like St. Clair and Talladega. Sales of homes have picked up in December 2010 and most real estate brokers expect the trend to continue in 2011. According to them, good sales will continue in most of the area's markets, and majority of these sales will be accounted for by distressed houses.

Realtors stated that Alabama foreclosed homes have been good for housing sales, but it has a negative effect on people who plan on selling their houses since they need to compete with the huge number and the very low prices of these properties. Some home sellers have asserted that despite the rise in the number of houses sold, the home selling market is actually not doing any better.

They argued that the low selling prices of these bank and federal foreclosures are creating a very week residential property market. They stated that these foreclosed properties are pulling the values of real estate down and, in turn, is weakening the overall condition of the housing industry. Realtors also stated that Alabama housing markets will remain weak in 2011 as the number of foreclosed houses increase further this year.

However, local realtors stated that loss of properties to foreclosure will not affect all markets in the same way. They stated that counties like St. Clair and Talladega, for example, will not feel the impact of the foreclosures as much big metro areas. They asserted that these two regions did not experience the same level of fluctuations in home prices during the industry boom and the subsequent home market crisis.

Local realtors did admit, however, that bank and federal foreclosures might not be as big a problem in smaller counties of Alabama as in the state's metro regions, but the nationwide economic downturn affects all areas in much the same way. They stated that unless the national economy and the job market improve, the recovery of the housing industry will be a long time coming.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.

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