Majority of Single Family Homes for Sale Go to First Timers

by on Foreclosures

A huge percentage of single family homes for sale and other residential properties in Alabama are being snatched from the market by first time home buyers. According to real estate agents, the low prices of houses and record low mortgage rates are part of the reason for first timers' increased interest in homeownership.

Realtors revealed that Tuscaloosa foreclosures for sale and distressed dwellings all around the state are highly in demand among new homeowners, particularly those who belong to the younger generation and are just starting to make a career and go on their own. These buyers, agents have revealed, are taking advantage of the low rates of mortgage loans.

Just last week, buyers of Alabama bank foreclosures were able to secure a 4.46% rate for 30-year fixed mortgages, while 15-year fixed rates averaged 3.81%. Most first time buyers have reportedly spent some years living with their families while saving money for down payments. Now, majority of them are ready to plunge into homeownership.

Realtors in the state have reported that most buyers of single family homes for sale are opting for Federal Housing Administration loans since they only require a 3.5% down payment which is what most first time buyers can afford. Real estate agents have also stated that first timers are great to work with, with most of them showing high levels of enthusiasm to the idea of owning a property for the first time.

Agents have also revealed that most first time buyers of bank foreclosure homes sales are highly knowledgeable about the housing market and they usually ask the right questions. These buyers are also highly appreciative of realtors and property agents' efforts in finding the property they are looking for and providing them with what they can afford.

Majority of first time home buyers, agents further revealed, are interested in dwellings priced between $80,000 and $140,000. For non-first time buyers who are looking to level up, the problem, realtors stated, is that they need to sell their homes first before they can buy a new one. This creates some problems since the housing industry is currently not a seller's market and thousands of low-priced single family homes for sale are already available which creates tight competition among home sellers.