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Supply of Unsold HUD Homes Remain High in New Jersey

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By : John Cutts    99 or more times read
The huge supplies of unsold residential properties, including HUD homes, remain a problem in the U.S., particularly in areas like New Jersey, New York, and North Carolina. According to housing market experts, the main factor behind the massive inventory of unsold properties is the lack of qualified investors and homebuyers.

Market experts have stated that properties offered at Elizabeth home auctions and at other sales channels in New Jersey lack the necessary number of buyers who can purchase the properties and ease the backlogs in unsold inventories. According to them, majority of potential buyers nowadays have negative credit ratings, loads of debts and most do not have the money to pay for the down payment.

As of the end of 2010, the number of houses that failed to sell at New Jersey foreclosure auction and other sales markets is equal to a full year supply of residential properties, given the current pace of sales. New Jersey is not the only U.S. area with this level of unsold inventories, according to housing industry experts. Metro areas like Nashville, Tennessee; Charlotte, North Carolina; and Long Island, New York, are just some of the regions that are currently sitting on a 12-month supply of unsold houses.

Analysts stated that there are a lot of potential buyers who are willing to purchase low-priced HUD homes and foreclosed properties, but are unable to do so because of tighter lending standards and fear of job loss. They stated that sales of residential properties are down in most areas of the U.S., while supplies of properties for sale have kept rising.

Realtors have also reported that sales of properties at house foreclosure auction, particularly in county settings, have tanked in most areas of the U.S. In New Jersey, housing sales at rural areas have come at an almost standstill, with sales in urban regions selling at a slightly faster pace, but still below normal market levels.

Industry experts stated that the number of unsold residences, including low-priced foreclosed and HUD homes, will remain high until the job market stabilizes and lending rules are loosened a bit. They stated that more foreclosed properties will be added to the unsold inventories this year, particularly in areas like New Jersey and New York.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.

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