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Buyers Finding Distressed Homes for Sale More Appealing During Winter

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By : John Cutts    99 or more times read
Homebuyers are busier finding distressed homes for sale and low-priced properties during the winter season, according to realtors. This means more foreclosed properties are sold during the last few months of the year and the first two months of a new year which, in turn, cause the prices of dwellings to plummet, realtors further stated.

For January 2011, sales of Minneapolis distressed properties and St. Paul foreclosed homes jumped higher than the previous months. This also explained why the prices of houses in the Twin Cities region dropped by almost 11% when compared with January 2010, with the median selling rate ending at $140,000 last month. According to the Minneapolis Area Association of Realtors, majority of the houses sold in January were short sales and foreclosures.

Local realtors stated that buyers usually go for distressed homes in Minnesota during winter, while in the spring, majority of buyers mostly purchase traditional dwellings. Although the overall housing unit price in the region declined, selling prices of non-foreclosed houses actually rose during the month. Median price for non-foreclosed houses sold last month increased by 2% compared with January 2010 to reach $201,500.

Housing industry analysts stated that the fact that finding distressed homes for sale is still very easy in the region means that the market has yet to hit bottom. They further added that prices will likely decline further in the coming months of 2011. However, there had been some good news in the home selling area, with signed purchase contracts jumping by 4% in January compared with the same 2010 month.

Completed sales of residences, including those involving distressed dwellings and foreclosed VA homes, also increased by almost 10% for the same two-month period. Meanwhile, sellers of residential properties are forced to cope with longer times spent by houses in the market before they get sold. This, realtors reported, forces most of them to cut down their offer prices even lower.

For those who are into finding distressed homes for sale, the Twin Cities will probably be a good place to look as inventories of unsold dwellings in the region have risen by 14% last month compared with a year ago. The area's unsold home inventory currently stands at 7.6 months.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.

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