Alabama has a history founded principally on agriculture, but as times have moved on the State has expanded its interests to match the demands of the global economy, diversifying into education and defence. There are now major US Air Force and Army bases in the State providing a significant number of jobs and incomes to the local people. Alabama also has a large State University in Montgomery which is a major employer in the area.
With a reputation as being a cautious population with steady lives and incomes, the State of Alabama was not heavily targeted by the sub-prime vultures at the peak of the lending crisis that manifested itself in the summer of 2007. States such as Nevada (with the focus on Las Vegas), California, Florida and Ohio were seen as the areas for "hot investment", and to a degree, Alabama was spared. This accounts for why the foreclosed home figures for the State are lower than much of the rest of the nation. In fact, Alabama is listed as the 43rd worst State for foreclosures, with Nevada being top of the list.
In raw fact and figure terms, this amounts to one in every 2,492 homes being at some stage of the foreclosure process in Alabama in October 2008, which is a 15% increase on the previous month, but a 233% increase on the same time the previous year. This may seem like grim reading, but to put it in perspective, the nation's worst hit city - Las Vegas had over 12,155 listings in October alone, making it by far the worst affected city in the country, and with a total that is seven times the national average.
House prices in Alabama have dropped significantly over the past two months too, a drop of up to 30% in some areas. This is not helping to sell foreclosed homes that may have been on the market for some time. Foreclosure properties are sold as a bargain, but they often come with added complications such as having been desolate for some time.
Many homeowners strip their properties of all value before they are repossessed, removing fixtures and fittings and even copper piping. The banks are not interested in maintaining the properties as they are often sold unseen at auction. People are less willing to save 30-40% on the price knowing they will have a lot of work facing them when they have bought, when in reality the traditional housing market has already fallen 30%.
Author Resource:-
Kevin Simpson, has been studying the foreclosures market, helping buyers on the finer points of Alabama foreclosures for sale.
Kevin Simpson, GM Sales & Marketing, Alabamaforeclosuresforsale.com
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