Mobile Homes Hit by Housing Meltdown

March 24, 2011 / Russell Legato, Residential Property Analyst

Just like traditional houses, mobile homes in the current residential real estate market are also hit by the still-declining housing market. But, unlike the standard residential properties, mobile homes’ problem is not foreclosure — it’s the lack of home buyers. According to a report, retiring seniors, the main buyers of the movable houses are not buying in the mobile home market anymore.

Mobile Homes Hit by Housing Meltdown

Inline with movable homes in California, home builders are now building tiny houses that can be attached to public utilities, which are attracting many people recently, instead of constructing larger ones as it’s becoming a more practical place to live. Sizes of the homes range from 65 to 1000 square feet.

Last year, Alameda County, California, the median sales price paid for mobile homes was $40,000 from $85,000 median paid in 2006 — before the fall of the real estate market. Sales of mobile homes are down by 53 percent.

According to a real estate agent from a local real estate firm, Century 21 Realty Mission Bishop, the major factor that affects the sales of mobile homes is that people can not get enough from their house’s worth like they used to.

Mobile homes traditionally provided homebuyers with an inexpensive way into the housing market without huge mortgage payments, and for retired seniors, it’s a way to realized a lifestyle change and live from the proceeds of a home sale.

In San Francisco Bay Area, residents of mobile homes rent out spaces in parks for movable houses, while in rural areas, mobile homeowners can buy an acre of land and pay for installed water and electric bills.

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