The real estate boom witnessed from the years 2000-2001 till 2004 is almost over. When the bubble was at its peak, the asking price by the sellers of housing property soared like anything, even up to 25% comparatively from the previous years, in at least 5 or 6 States of U.S., including Alabama. But once the U.S. economy started to show a down-ward trend, the chain of reactions in the financial markets inclusive of real estate market was spectacularly visible. In the years of 2005, 2006 and till the major portion of the current year 2007, this trend continues to exist.
Encouragements to U.S. citizens in acquiring their own homes were made by extending mortgage loans and loan guarantees in buying homes, through government sponsored agencies like Freddie Mac and Fannie Mae. Lax credit standards, the mania of the people to go in for home buying for their own use and as investment for steady income, sanctioning of home loans disproportionate to income and repaying capacity have all joined together in instigating the push over foreclosure of properties in every State. Alabama is no exception and the figures of properties available for sale from distressed house owners listed in Alabama Real Estate Foreclosures have been swelling.
Today the Real estate in U.S. has become a buyers’ market. For every home shopper searching in MLS listings and Foreclosure listings online, there are 11 properties offered with particulars to match the search. Owing to this imbalance in supply and demand, where the supply far exceeds the demand, eventually the prices of secondary homes listed in MLS have fallen considerably. Needless to mention that the foreclosure properties, whether they are from HUD, Banks through Repossession and Real estate business institutions have become the most lucrative propositions for home buying – offering a sizeable discount of 20% to 50% in many cases. Alabama Real Estate Foreclosure homes reflect this situation exactly as in other States, with the added advantages of home buying in this State as follows:
Alabama State is preferred by people for living amicably with its temperate climate, lower cost of living compared to other States, largest industrial corridor of the nation offering growth potential for employment opportunities, sound economy of the State by surplus budgets of the State government etc. These plus points augur well with the Alabama Real Estate business. For home buyers this is ideal time for buying from Alabama Real Estate Foreclosure Homes for huge savings. For investors, this is right time to invest and reap the profit by renting or resale in the near future.
Now the availability statistics of Alabama Real Estate and Foreclosures:
Nos. Average price
Secondary Homes listed in MLS 25,755 $181,500
Newly constructed homes 10 $196,990
Classified Real Estate properties 17,141 $189,900
Foreclosure homes 2,569 $ 67,500