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Foreclosed homes in Florida Being Grabbed by Investors

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This is one of the most critical phases in the US. Unemployment is at an all-time high. As people lose jobs even those with good credit history are unable to make mortgage payments. Hence, foreclosures have become common. The foreclosed homes are available at a bargain. Hence, there are many bidders for each apartment. What is surprising is that investors have edged out first-time buyers by making all-cash transactions.

In Florida, for instance, foreclosures are being grabbed by investors who have trooped in from other regions. A buying frenzy is common as every investor wants to take benefit of the plummeting prices. The Florida Association of Realtors observes that the single home unit sales have improved considerably. In Miami Dade, they had increased by as much as 22 per cent in August when compared to the corresponding period of 2008. The average price had also dropped to $194,800, registering a 29 per cent fall.
Not only single-home units but also sale of condominiums has increased by 17 per cent. The price of condominiums has also come down by 31 percent to $144,700. In Broward region, there has been a downward price revision, which saw sales increase by leaps and bounds. In fact, sales increased by 35 per cent. The average price of single home units is pegged at $217,000, registering a 20 per cent fall from the same period in 2008.

Mike Pappas, the CEO of a real estate company, has made certain observations about the prevailing real estate scenario. He says that there are enough pointers to show that the market has reached the bottom. The current buying frenzy is one indicator. Investors are desperately trying to outbid each other to pick up properties at a bargain.

Last year, the number of buyers was quite few. Now every home is drawing at least 10 to 15 buyers. This is a pointer to the fact that the market has reached the ebb. From here, it could only go up. Experts say that there are a few obstacles in the path of the real estate market. The first obstacle is unemployment. With job loss on the high, people are still finding it difficult to make mortgage payments. Another critical factor is the profusion of negative equity homes. The market is replete with houses whose values have dipped so low that people owe more on these homes than what they are worth. Unless these are corrected the market will not rebound.

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