ACTIVE REAL ESTATE FORECLOSURES FOR SALE IN BIRMINGHAM AL – 01/31/2012

ACTIVE REAL ESTATE FORECLOSURES FOR SALE IN BIRMINGHAM AL 01/31/2012

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ACTIVE REAL ESTATE FORECLOSURES FOR SALE IN BIRMINGHAM AL

These are Single Family Homes ‘Active’ on the Birmingham MLS. These homes are ripe for the picking. DO NOT LET THEM PASS YOU BY…ACT NOW….BEFORE IT IS TOO LATE!!!

ACTIVE REAL ESTATE FORECLOSURES FOR SALE IN BIRMINGHAM AL

I hope you have an awesome day, packed with smiles while searching for your active Birmingham AL Real Estate Dream.

Over the past few months, a spate of good news about the U.S. housing market has led some to think a recovery is finally on the horizon.

The evidence is compelling. It now costs almost as much to rent as buy. Since the housing bubble burst in 2006, home prices have fallen by 33% nationwide. Waves of foreclosures and tighter lending standards have helped drive a surge in rentals.

And during the third quarter, the median monthly mortgage payment totaled $698 compared to the median monthly asking rent of $700, according to Capital Economics, citing data from the National Association of Realtors and the Census Bureau. What’s more, the cost of borrowing has fallen to record lows, with interest rates for 30-year fixed rate mortgages hovering around 4%.

ACTIVE REAL ESTATE FORECLOSURES FOR SALE IN BIRMINGHAM AL

That optimism is well-deserved, right? Not exactly.

ACTIVE REAL ESTATE FORECLOSURES FOR SALE IN BIRMINGHAM AL

Since the housing market imploded, analysts have predicted year after year that prices might at long last bottom out. Will it finally happen this year? Perhaps next? Bottoming out necessarily precedes turning the corner — and until that happens optimists should be cautious. Economists widely cite the short-term obstacles weighing down prices. These factors range from high unemployment and household debt to the so-called “shadow inventory,” or all the properties that have yet to come into the market because of pending foreclosures or skittish homeowners delaying sales until prices improve.

ACTIVE REAL ESTATE FORECLOSURES FOR SALE IN BIRMINGHAM AL

At some point, interest rates will start rising back toward the long-term median of 8.9% from the current 4%. Depending when and how quickly, the jump would make homes much less affordable for the average American family. Say a family earning $55,000 a year (the U.S. median household income) wants to buy a home. They decide they can afford roughly a $600 a month mortgage payment after taxes and other expenses. At a 4% interest rate they can afford a $125,000 home. However, at a higher rate of 5%, they can’t afford as much and are looking at a $111,000 home. If rates rise higher to 6%, they’re looking at a $100,000 home. And so on.

So while the housing market may eventually overcome the immediate bumps of foreclosures, high unemployment and the like, real optimists should be looking at the direction of interest rates before they get their hopes up.

 

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