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Sales from Florida Foreclosure Listings Up, Prices Still Down

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By : John Cutts    99 or more times read
Sellers of existing homes, including Florida foreclosure listings, are pleased that existing-home sales are up, but they are hurting from their failure to sell their homes at the price they paid when they purchased their homes.

In Broward County, sales of preowned homes increased by 47 percent from March 2008 levels to 680 units in March, based on data from the Florida Association of Realtors. The median home price fell by 30 percent from $311,400 in March 2008 to $219,500 last month.

In the Palm Beach area, existing-home sales increased by 20 percent from 572 in March 2008 to 685 last March. The median home price dropped from $320,200 in March 2008 to $228,100 last month. Analysts expect the median price to fall further to $150,000, a decrease of about 65 percent from the peak level of $421,500 in 2005.

Housing market observers cite several factors for the rise in sales of preowned homes and other homes in foreclosure listings. Investors with a lot of cash have been returning to the housing market. First-time home buyers have started to buy because of lots of homes available in foreclosure listings, bargain prices, further discounts given by sellers, lower mortgage rates and the tax credit of $8,000 which expires on December 1.

Greg McBride, financial analyst at, said that the affordability factor has enticed home buyers and investors.

Notwithstanding home sales increases, the inventory of home for sale in South Florida remains high, as mortgage lenders continue to add homes to foreclosure listings.

Real estate consultant Condo Vultures said that there are still 28,898 townhouses, condos and single-family homes in foreclosure listings in Broward County and there are still 26,808 properties for sale in Palm Beach.

Some real estate agents however have been capitalizing on the so-called spring selling season. Randy Bianchi related he guided four buyers this week to a waterfront house which received no interest from any of his clients in the past three years.

Meanwhile, home buyer Lewis Lopater related his purchase of a three-bedroom home in the Palm Beach Gardens subdivision for only $174,000, down from the $229,000 list price in 2008. Together with his wife and two children, he will pay around $1,400 monthly to the lender, just $200 more of what they are paying as renters.

Nationwide, however, sales of preowned homes, including homes from foreclosure listings, declined by 3 percent in March. The median home price fell from $200,100 in March 2008 to $175,200 last month.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.

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