Georgia Foreclosure Homes on the Rise, Values to Drop- By: John Cutts
Last month, the number of Georgia foreclosure homes increased by almost 40 percent. The increase in foreclosure numbers prompted industry experts to predict another decline in home values in the state. They said that the value of a property will drop significantly if it is located near a foreclosure house.
Industry experts said that in the Metro Atlanta area, home values declined by another 10 to 15 percent in the past six months. Recent market data showed that Georgia is ranked as one of the top 10 states nationwide with the highest foreclosure rate.
Because the housing market is dominated by foreclosure properties, many homeowners are finding it difficult to sell their homes. Frustrated homeowners are finding it hard to compete with the very low market prices of foreclosure properties. They said that majority of prospective buyers would prefer buying bargain-priced Georgia foreclosure homes because they could save a lot of money.
For this month, over 200 foreclosure houses are scheduled to be auctioned off in Atlanta. According to industry experts, many foreclosure homes on the auction block are priced below market value, with some fetching a starting bid of just $49,000. They cited a Northcliffe Drive foreclosed home which was originally valued at about $1.2 million but is now being sold for $189,000.
Industry experts said that the current market prices of foreclosure properties in Georgia are unprecedented and it would be a wise move for buyers and investors to take advantage of the market situation.
The current situation in the Georgia real estate market may bring a smile on buyers' faces but it is the other way around for sellers. However, industry experts are optimistic that the market will recover in the next five years.
On the other hand, last month's foreclosure rate earned the state the ninth position in the nationwide ranking. According to market data, Georgia posted foreclosure filings on 11,947 properties in August. Filings include notices of default, auctions and bank repossessions. Last month's figures represented a 36.5 increase compared with the same month last year and 7.3 percent higher over July 2009.
The state's foreclosure filing numbers earned it the seventh position in the national ranking of states with worst foreclosure filing rate.
Industry analysts said that the August foreclosure activity showed that there is still an abundant supply of foreclosure properties on the market despite the regulated release of bank-owned properties.
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John Cutts has been educated in the finer points of the foreclosure market over 5 years.