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Pre Foreclosures in Fort Myers Contributed to Value Drop

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By : Allana Castro    99 or more times read
Pre foreclosures in Fort Myers are still contributing to the sharp drop in property values in the area.

Although total foreclosure filings in the Fort Myers-Cape Coral area dropped in April, the metro area moved up on the foreclosure rate charts, from sixth place in March to fourth place in April. This meant that the Fort Myers metro area has not been recovering from the housing crisis as well as other cities.

The total number of Fort Myers distressed homes in April was 3,479, down by 12.2 percent from the March total of 3,961 and down by a staggering 44.5 percent from the April total of 6,272.

Similarly, the number of distressed homes in Florida dropped in April to 48,384 units, down by more than 18 percent from the total in March and down by more than 25 percent from the April 2009 total. Of the total, more than 39,000 were pre foreclosures and more than 9,200 were completed foreclosures.

Despite the slowdown in foreclosure activity, the number of troubled homes in Florida was the second-highest among states in April.

In like manner, despite the decline in foreclosure activity in the Fort Myers area, repossessed properties and the relatively long lists of fixer upper homes are still pushing down taxable property values in Fort Myers and in other areas of Lee County.

Over the past 12 months, real estate values in Lee County have fallen by 15 percent, and over the past four years, values have plunged by a total of 40 percent. The total loss in real estate value has already reached $50 billion.

The low sales and dollar volumes for commercial properties also contributed to low property values, pushing down further property tax revenues. There were 70,000 residential units sold last year, but the total dollar volume was lower than expected because 70 percent of all sales were foreclosures.

Despite the slowdown in filings in April, pre foreclosures and repossessions are still expected to put a downward pressure on property values because of the still low prices of residential and commercial properties in Lee County.
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