Unlike other parts of the country, foreclosures account for a small portion of Jonesboro real estate transactions. According to data from the Jonesboro Association of Realtors, foreclosure sales in Jonesboro, AR made up only 16 percent of residential property sales in 2010, compared to the national 33 percent of homes sold in the U.S. However in Jonesboro, the percentages get even lower as the sales price gets higher. For example, 2010 home sales in Jonesboro that were $300,000 and above, less than 2% were foreclosure sales. See the chart below for the breakdown.
Furthermore, in an effort to maintain the momentum gained by the housing market, the Los Angeles Times reports the Federal Housing Administration has decided to extend its suspension of government anti-flipping rules to increase FHA lending.
Last January, officials enacted a one-year suspension of the rule to allow homebuyers to take advantage of the FHA's low down payment requirements to buy up some of the vast foreclosure inventory present in some parts of the country. Officials told the paper they are planning to extend the suspension for another year.
The original rules, which are designed to keep unscrupulous investors from defrauding the government, prevents a buyer from getting an FHA loan if the seller hasn't owned the property for at least 90 days.
The paper says while the rule does cut down on fraud, it also keeps legitimate property investors from buying a home, fixing it up and reselling it for a profit to a real buyer.
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