Foreclosure Market Down in Huntsville

With all of the fanfare nationwide about foreclosures, here in the N.Alabama market, we are seeing a downturn. A quick look at the foreclosures offered, show less than 100 houses in the REO category, out of approx 4500 houses for sale. Since the first of the year from all I can tell in my brokerages experience and others, about half the houses sold are being FHA financed. THis translates into having to prepare my sellers for the extra inspections imposed by govt. backed financing. By pointing this out up front, there is no nasty surprises when the home gets a thumbs up from a home inpsector and then the FHA appraiser, has a list of repairs for the "subject to" appraisal. In this enviroment it is prudent to point this out up front to both buyers and sellers.