Foreclosures For Sale?

Huntsville Area Statistics

Rarely a week goes by when I don't hear this question. It seems everyone is foreclosure conscious lately, and everyone is looking for a bargain. I receive, like many agents, multiple calls a week asking for a list of foreclosures - Most people want those foreclosures to be "move-in" ready.

The reality is the Huntsville and Madison County area is not suffering like much of the country. Recently, several major publications including "Forbes Magazine" cited the Huntsville and Madison County area as the #1 place to live during the economic downturn. But this has not deterred the demand for foreclosed properties in our area, and much of that demand is coming from people living in other states.

If this demand for foreclosed properties is not enough, there just aren't a lot of foreclosures available in our market, making the foreclosure market even more competitive. And banks know this.

Many foreclosures sell at full asking price. Full asking price is typically close to market value if the home is in livable condition. Notice I said "if". And that's a big "if". Many foreclosures are not in livable condition according to current FHA lending guidelines, and deals fall flat on a frequent basis because of it.

A recent nationwide statistic shows foreclosures sell at 99% of asking price while non-distressed properties sell at 95% of asking price. Clearly, this demand for foreclosed properties has influenced these numbers.

I learned a valuable lesson long ago - We love statistics. Whether it's sports, business, or medical, statistics give us a clear picture of what's really going on. I've compiled some foreclosure statistics for the Huntsville, Madison, and Madison County area. These results were compiled on November 20, 2009.

  • The MLS showed 2879 active residential listings for sale in Madison County
  • Of the 2879 listings, only 107 were foreclosures.
  • Foreclosures comprised only 3.72% of the active listings, which is much lower than most of the rest of the country.
  • The average (mean) asking price for the foreclosures was $161,039
  • The median (middle) asking price for the foreclosures was $113,367
  • The foreclosure with the lowest asking price was $22,900
  • The foreclosure with the highest asking price was $8,895,000
     

Keep an eye out for the yearly statistics next month. As soon as those are released, I'll post them here. Until then have a Merry Christmas and Happy New Year!

Todd

www.HuntsvilleAlabamaHouses.com