Birmingham Distressed Properties for Sale Reduced Prices- By: Allana Castro
As Birmingham distressed properties for sale continued to surge in number, home prices pushed down home prices in April and in May.
In April, home prices fell by nearly 6 percent over the year and by 5.3 percent over the month. If distressed sales are excluded, prices fell by only 1.3 percent from April 2009.
In May, the average house price fell by 10 percent over the year to $166,910 and the price median fell by 8 percent also over the year to $144,000.
In the first quarter, foreclosure filings in Birmingham climbed up as job losses increased and property values fell. The area ranked 86th in a listing of the top 100 metro areas struggling from the effects of the recession.
The number of distressed homes in Alabama also increased in April. Total foreclosure postings climbed up more than five percent over the month to 2,411, which also marked an increase of 4.5 percent over the year. Of this number, a big portion are Birmingham distressed properties for sale.
A total of 1,017 units were repossessed by lenders and 1,394 were posted for trustee sale – a good number for prospective home buyers looking to buy distressed homes in the area.
Defaults and foreclosures have been surging in Alabama largely because of unemployment. Over the past ten years, around 93,100 jobs in the private sector were eliminated throughout the state, based on figures from the Bureau of Labor and Statistics. In May 2000, there were about 1.6 million jobs in Alabama. Ten years later, in May this year, the total fell down to about 1.5 million.
The employment changes from April to May, however, showed an improvement, as 9,200 jobs were added to increase the April total to 1,877,000 jobs in May.
However, despite the improvement, the statewide unemployment rate of 10.8 percent in May was still higher than the nationwide rate of 9.7 percent. Loss of jobs has been driving the surge in Birmingham distressed properties for sale.
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