Prospective home buyers can find foreclosed homes in the Florida Keys where house prices are still falling.
In the first three months of this year, the average house sales price in the Keys fell by 14 percent year-over-year to $417,000. The improvement in house affordability prompted a lot of prospective home buyers to make their home purchases, pushing total house sales by a sharp 28 percent compared to the fourth quarter of 2009 and by a whopping 34 percent from the first three months of 2009.
Local realtors also said that lower mortgage rates and the first time buyer tax credits helped improve house sales in the first three months in the Keys. They said that the expected increase in mortgage rates and house prices has created a sense of urgency in people planning to buy homes.
Realtors also contended that house prices in Florida will continue to be affordable to many prospective buyers because of continued foreclosure activity. They said that investors can still find foreclosed homes at profitable prices in most markets in Florida because of the emergence of around 8,700 bank-owned foreclosed homes for sale in Florida in March, pushing the number of new real estate owned homes in the first quarter of this year to more than 22,000 units.
The number of townhomes condos for sale across Florida is also still at high levels as a large portion of the condos built and converted during the housing boom remained unsold. South Florida realtors said that about 65,000 condo units were constructed in Broward, Miami-Dade and Palm Beach counties during the boom.
In the central areas of Miami alone, about 22,000 condo units were constructed between the years 2003 and 2009, more than twice the number of units built over the 40 years preceding the boom.
Some residential analysts said that a lot of buyers lost their condo units to foreclosure because when they bought their units, they had the belief that they could always rent out their units if ever they become unable to make the monthly loan payments. The overbuilding, however, erased their contingency plans as buyers and renters now have a lot of lower-priced condo units and single-family homes in the market to choose from.
In the Florida Keys, buyers and renters can still find foreclosed homes at affordable prices. As of the end of March, there were 3,800 various types of residential units available on the market.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.
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