More Buyers of Properties in Bank Foreclosure Lists Expected in Spring- By: John Cutts
A higher number of investors and homebuyers are expected to close purchase agreements for properties under bank foreclosure lists and other types of homes this coming spring in Louisville, Kentucky. According to realtors, spring is usually the season when homebuyers post the highest number of transactions.
Despite a difficult 2010, majority of local realtors believe that the city's housing market is on its way towards a recovery. However, they did admit that although foreclosure listings in Louisville might not be as massive as in other metro areas of the U.S., there were still enough distressed properties in the market to pull the industry down last year. Sales of housing units were also down last year, with closings declining by 1.8% in 2010 compared with year-ago levels.
Non-foreclosed residences in Louisville and foreclosure listings in Kentucky enjoyed a strong six months last year, when sales jumped during the January-June period. Analysts stated that majority of home buying activities during that time were buoyed by the federal tax credit initiative. However, sales immediately declined once the credit program expired.
Housing experts stated that improvements in housing sales figures for those six months should not be construed as recovery since they were artificially inflated by the initiative. This time though, they believe that things are looking up. They stated that although most of the houses from bank foreclosure lists are being sold at prices way below normal market levels, there are more interest from investors and regular homebuyers than before.
Part of the reason, experts have stated, is the improvement in the stock market, which gives buyers more confidence that the economy is starting to recover. They also stated that listings of foreclosed homes and even non-foreclosed dwellings are getting more attention from people who, earlier, were reluctant to make a purchase. Analysts also stated that the fact that interest rates are slowly rising again might convince more people to make a purchase now before rates climb even higher.
Although bank foreclosure lists and distressed properties still account for a considerable percentage of the housing market, most realtors in Louisville believe that 2011 will be a much better year for the city's residential property market compared with the past three or four years.
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John Cutts has been educated in the finer points of the foreclosure market over 5 years.