Bargain Homes for $50,000: While the national average
is $225,000
November 21, 2006
Recently home prices have fallen from a median price of $250,000 down to
around $225,000 for a typical single family home in the USA. But for many
buyers, that difference of only 10 percent is relatively insignificant, because
the prices are still out of reach.
Fortunately for those home shoppers, a small move in the average price
of a home corresponded with historically significant increases in foreclosure
inventories. The prime interest rate has doubled within the past two years, and
as a result, payments on many interest-sensitive loans like adjustable rate
mortgages have also spiked. The current forecasts from a number of experts have
defaults on those loans increasing by 10 percent – and that is a 10 percent
move that has really profound influence on the foreclosure market outlook.
A quick check of the foreclosure listing section on Bargain Homes
offered these representative samplings and insights into the foreclosure real
estate bargains now available throughout the country.
Atlanta, Georgia Area
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A five bedroom, one bath for $19,000 in Atlanta.
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A four bedroom, three bath in Decatur for $50,000
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50 properties for under $50,000 within 25 miles of downtown Atlanta
But job growth in Atlanta and other Georgia cities is above the national average, and the cost of living is below average. And Atlanta made Sperling’s Top 10 Places to Live and was included in last year’s CNN/Money Best Places to Live rankings.
Sunny Florida
Florida has proven to be a great investment throughout the years,
because of a combination of attractive assets including the world-famous
climate and proximity to Atlantic and Gulf Coast beaches.
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North Miami Beach has a listing for a one-bedroom, one-bath for $17,000
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Miami advertises a two-bedroom, two-bath for under $17,000
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Within an hour’s drive of Miami are splendid neighborhoods, beaches, and
bargains. We found 17 foreclosures for $50,000 or less, but more than 400 in
that same price range listed as pre-foreclosure properties – which means they
will likely come on the market before the end of the year.
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In luxurious Boca Raton there is a two-bedroom, two-bath for under $25,000
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Palm Springs area has foreclosures including a two-bedroom for $40,000 and
one-bedroom homes for under $27,000 apiece.
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Florida’s Merritt Island is close to Orlando, and Bargain Homes shows a Merritt
Island listing for a two-bedroom, two-bath for $52,500 that has been listed
since August 2006. We’re willing to bet that if it hasn’t sold yet, the seller
would gladly entertain a $50,000 offer, so we decided to sneak it into our list
of bargain homes within a $50,000 budget.
New York / New Jersey
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A property on Staten Island is listed on Bargain Homes for $35,000; four have
recently sold in Brooklyn for $20,000 or less; and a four-bedroom in nearby
Trenton, New Jersey is available for $49,000.
(Meanwhile, some condos in Brooklyn that are brand new and not in foreclosure
sell for a mind-boggling $1,200 per square foot.)
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28 pre-foreclosure listings and 33 foreclosures for under $50,000 are listed,
all within 10 miles of Moorestown, New Jersey. You may have read about
Moorestown, because last year it was ranked in the 2005 CNN/Money List of Top
10 Best Cities to Live in the USA.
Colorado
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43 pre-foreclosures and 63 foreclosures listed within 10 miles of Denver
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30 pre-foreclosures and 25 foreclosures in Colorado Springs for under $50,000
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Two pre-foreclosures and seven foreclosures in Fort Collins, including a 3
bedroom one bath for $41,900.
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14 pre-foreclosures and almost 100 foreclosures within 25 miles of Fort Collins
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Fort Collins was ranked one of Money Magazine’s Best Places to Live in 2006,
because of an abundance of pristine nature and a stress-free lifestyle. And
Sperling’s Best Places – a demographic data company in partnership with Bargain
Homes – projects job growth for Fort Collins around six percent higher than the
national average.
As the law of economic gravity kicks in following the burst of the real
estate bubble, it seems that the bigger they are, the harder they fall. Some of
the largest states in America boast the highest foreclosure rates for 2006.
Florida’s recent rate of foreclosure has been running around 400 percent higher
than the USA national average, and other remarkably active foreclosure markets
tracked by Bargain Homes include California and Texas. In fact, California
foreclosure inventories continue to swell, although they are already up more
than 110 percent from last year. And foreclosures in Colorado are up 60 percent
from 2005.
So while some buyers welcome home prices that have dropped from $250,000
to $225,000, those who invest in foreclosures are finding bargain homes at a
cost of five or six for the price of one.