Demand for Low-End Foreclosed Homes in St. Paul Spurts
The US is in the grip of a deep recession. As unemployment reaches its zenith, people are faltering on mortgage payments. Hence, foreclosures are common. Now there is a demand for low-end foreclosed properties in St. Paul. In August, there were a total of 1,811 vacant spaces in the area. This means a decline of 12 per cent vacant homes from the corresponding period of last year. It may be noted that in August 2008 there were 2,047 vacant spaces.
The empty properties are both residential and commercial spaces. The decrease in their numbers is a reflection of the real estate scenario. This was revealed by director of the Department of Safety and Inspections, Bob Kessler. The demand for homes has received a boost because of several factors. First, the price of foreclosed homes has seen a decline making it attractive for ordinary buyers. Second, the government has announced a federal tax credit for those who buy homes for the first time.
The number of foreclosures has decreased because the lenders are delaying legal proceedings. As Kessler observes the buildings are being struck off the list in greater numbers than they are being added. Also home owners are willing to palm off the properties at very low rates – as low as $15,000 to $20,000. Hence, buyers are grabbing the properties, revamping them and again selling them off, thereby making a small margin.
One such renovated property has been put on display by an investor. This house at Lawson Avenue will be viewed by buyers. The St. Paul Area Association of Realtors and Wells Fargo have organized the tour for the home buyers of the region. The tours are important because there are many vacant properties in the region. Even three years ago, there were 900 vacant buildings in the area. A building is usually labeled as vacant if it is unoccupied and meets any of the seven criteria like being not safe.
It’s not possible for anyone to know how many vacant buildings are there in the city. Registration is not compulsory and done only under certain circumstances. However, real estate developers want to believe that their numbers are fewer than before. Whatever be the case, experts say, that the real estate scenario will not improve until and unless, more jobs are created. Unless people have the purchasing power and are able to make the mortgage payments, foreclosures will continue to plague the American market.
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