Fannie Mae Foreclosure Listings Compete With Home Sellers

by Peter Vernon on Foreclosures

The current housing market in Mobile, Alabama has been categorized by realtors as a buyer's market, with thousands of cheap properties under bank as well as Fannie Mae foreclosure listings competing with regular home sellers who are forced to lower their prices if they wanted their houses to be sold.

According to area realtors, Mobile foreclosed homes are being sold way below their original asking prices. A dwelling at Holley Branch reportedly sold for $385,000 from an original listing price of $599,000, while another at Rock Creek was purchased for $708,000 while in foreclosure from an original price of $1.8 million.

Housing market observers have reported that the presence of thousands of Alabama foreclosures for sale is making it more difficult for homeowners to unload their existing residential properties. Aside from the poor condition of the economy, the huge supplies of foreclosures make it difficult for non-foreclosure dwellings to get buyers' attention.

Housing figures showed that 3,746 houses were available in the Mobile County market during the month of September, including dwellings under bank foreclosures and Fannie Mae foreclosure listings and non-foreclosure residences. The average price of a house during the month was $124,698.

In addition, mortgage rate for 30-year fixed loans was at 4.24% last week, while the 15-year fixed loan had an average rate of 3.63%. The very low average price of houses, the huge supply of foreclosed homes for sale and the record low mortgage rates have all made it very challenging for sellers of high end and mid-price homes to attract buyers, realtors have reported.

They also reveal that majority of sales deals in the area concern foreclosed houses and non-foreclosure sellers do not have much chance of competing unless they are willing to accept a purchase price that is way below the real worth of their homes just to get the rate closer to foreclosed dwelling rates.

Housing experts have also stated that an additional difficulty is that buyers who want to buy a mid-price or a high end dwelling will have to first sell their own residences so that they can afford the price of non-foreclosure houses. This, experts reveal, add more to the number of cheap properties like those in bank as well as Fannie Mae foreclosure listings that are already in the market.