Sellers of residential properties in north Alabama, including FHA repo homes, are getting convinced that now is probably not the best time for the home selling market. Homebuyers are scarce in the region as well as in other U.S. markets. However, tenants are aplenty and more are coming to the state to look for properties they can rent.
According to state realtors, rental homes are getting occupied faster than repo homes in Birmingham and in other key areas of the state are getting sold. And this is despite the low prices of repo and foreclosed houses. Over the past two years, real estate agents have reported that rental houses in the state, particularly in the northern area, have increased to almost record highs.
Realtors have explained that, although Alabama repo properties and other homes have declined in prices for the most part, buying a home has become more difficult as lending standards have become tighter in most areas of the U.S. They added that qualifying for housing loans is more difficult now than it had been, so most people are choosing to rent properties instead of buy them. Brokers also revealed that almost 50% of their clients are accounted for by those seeking rental housing.
For the part of home sellers, including those offering low-priced FHA repo homes and foreclosures, most have reportedly changed their minds and are now opting to have their properties rented out. The average time that a home remains unsold in north Alabama after getting listed is four months and 15 days and some sellers are in need of immediate cash and cannot wait that long.
Meanwhile, those who have moved to Alabama from other markets also find it difficult to purchase houses in the state, even lower-priced repo homes for sale. Majority still need to sell their houses in states where they came from, and that has proven to be really difficult. Short on money and needing an immediate place to live, those who have relocated to Alabama mostly look for rental housing.
The increasing number of would-be renters has convinced a lot of home sellers, including sellers of FHA repo homes, to convert their properties into rental dwellings. At least until the market regains its balance.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.
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