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Sales of Bankruptcy Distressed Homes and Other Existing Houses Drop



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By : John Cutts    99 or more times read
Sales of bankruptcy distressed homes and other existing residential properties dropped in some areas of Florida in December and also declined for the rest of 2010. Despite the sales drop, local housing experts are optimistic that 2011 will be the start of the housing market recovery in Florida.

A number of housing experts stated that prices of residences will be unlikely to hit bottom in 2011, primarily due to the lingering oversupply of Fort Lauderdale distressed homes and foreclosed properties in the rest of Florida. However, they claimed that the state's home market is stable enough to avoid drastic price declines, similar to what happened in 2008 to 2009. They predict that the state's residential property market will improve slowly during the year.

The optimistic forecast was largely hinged on the decline in the sales of Florida distressed properties during 2010. In Broward County, for example, existing housing sales dropped by 14% last month and declined by 9% for the whole 2010. The median price for December 2010 declined by 4%, while the full-year median rate pegged at $206,100, posted an increase when compared with the 2009 median price.

Meanwhile, in Palm Beach County, sales of bankruptcy distressed homes and other existing dwellings increased by 9% in December and rose by 10% for the full 2010 period. The median prices of houses sold in the region during December and for the whole year both declined, ending 2010 at the rate of $228,900, which represented a drop of 4% compared with the 2009 median price.

For the whole state, sales of foreclosure list distressed properties and other types of existing residences jumped by 4% in the last month of 2010 and rose by 5% for the full-year period. However, the median price of homes sold for both covered periods declined. Some housing experts stated that, nationally, the December sales pace is nearing the predicted volume for 2011, demonstrating that the national housing market is close to attaining a sustainable level.

Other market analysts are not as optimistic though, arguing that unemployment and the high supplies of foreclosed and bankruptcy distressed homes will continue to drag the residential property market down in 2011. They added that tight lending policies will also hinder the market's recovery.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.

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