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Florida Foreclosure Homes Make State a Buyer’s Market

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By : John Cutts    99 or more times read
Florida foreclosure homes have wreaked havoc on the lives of thousands of homeowners and bring devastation to neighborhoods. The increase in the number of foreclosure properties pushed down home prices and values, there by allowing those who have dreamt of owning a house a chance to buy one.

In Daytona Beach, cheap foreclosure properties have made the area a buyer's market. According to industry experts, home values in Daytona have never been this low before, thus attracting many potential homebuyers who, during the peak of the housing market, could not afford to buy one.

Last month, home sales in Daytona rose by 20 percent compared with August the previous year. But home prices took a different direction, dropping by almost 19 percent. The saturation of foreclosures and short sale on the market allowed buyers to have a wide range of cheap properties to choose from.

In the first six months of this year, the foreclosure rate of Daytona Beach was one of the highest among 20 metropolitan areas in the country. Industry analysts attributed the increase in the number of Florida foreclosure homes on the rise in unemployment rate. They said that many homeowners lost their jobs, making it difficult for them to pay their monthly mortgages.

Analysts said that the federal tax credit of $8,000 has been a great help for first-time homebuyers to take advantage of the low home prices in Daytona. Currently, a great number of first-time homebuyers are scrambling to complete the purchase before the November 30 expiration of the tax credit. The industry has been lobbying the U.S. Congress to extend the tax credit program.

Meanwhile, analysts said that despite the wide array of cheap foreclosure homes to choose from, sales are coming in at a slow pace. This is because many buyers are finding it difficult to obtain a loan. Analysts said that stringent requirements were imposed on loan applications.

On the other hand, industry analysts said that the thought of a possible job loss has hindered many buyers from making a purchase in the area. In July, Daytona's unemployment rate peaked at 11.2 percent which was higher compared with the national rate.

But despite the struggling market, industry experts said that it is facing on the right direction towards recovery.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.

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