Bargain Homes Increase Sales with Increased Foreclosures

by on Foreclosure Crisis

In October, hunters have been targeting bargain homes in Broward County, South Florida. Amidst the very challenging mortgages and increasing job losses, buyers never get second thoughts about investing on the much affordable bargains. With the increasing number of foreclosed homes, bargain homes would remain an eye candy for these hunters.

According to Florida Association of Realtors, home sales in the area have climbed to 46 percent that is from 428 the previous year, to 625 sales this year. Who would not want to grab such an opportunity when price has declined from $354,000, to $252,500?

The increasing sales are simultaneous with the decreasing median prices in the market. Such trend is observable with the increasing foreclosures in a neighborhood or area. Even Broward’s condominium has proven the trend with increased sales up to 30 percent as median price drops to 115,200 or 28 percent in their market. Also in Palm Beach County, with 37 and 24 percent sales and median price drop, respectively shows similar trend.

Although a surprising drop has already occurred in October, there is still more drop to expect with the continued foreclosure crisis.

A lot of these homes targeted by bargain hunters are those sold after having been seized for debts. However, these houses are in critical condition – needing new roofs and even some major repairs. Most, if not all of these homes are for short sales or foreclosures.

These conditions on the other hand, may also come in handy, allowing purchase for a price even lower than the original asking price.

With the recent sales trend in South Florida, properties available in the market are gradually reduced. However, despite the good turn out in home sales, with existing foreclosure homes, it may still take some time to sell a house, a little more than five months.

The challenge now is the pressure future foreclosures are posting as it waves through the market. Furthermore, how it can affect home sales, and even prices in the coming future.