Find Fixer Upper Houses for Sale in Overbuilt Florida

by on Foreclosures

Prospective buyers looking for fixer upper houses for sale can find them in large numbers in Florida cities as most of these cities were overbuilt during the boom, according to residential market analysts.

In many market surveys over the past year, Florida was listed as among the most overbuilt U.S. states. Its city skylines are full of unsold, vacant and dark condo units and its housing subdivisions in the suburbs and central areas are filled with unfinished structures and unsold deteriorating buildings.

Part of the blame can be laid on county officials that approve residential development projects without considering the impact of new housing units on the overall housing market. Officials are oftentimes enticed by the promises of affordable housing or community development benefits presented by developers.

One recent example of a county-approved residential development project that could worsen overbuilding and lead to more foreclosed homes for sale and fixer upper houses for sale is the new-city project approved by the Osceola County Commission.

The approved project would add 30,000 more houses to the already full housing market. It was good that state planners criticized the project, leading the developers to back off. But the developers are now pitching another use of the housing project – complementing the medical city and high-technology projects in Orange County.

But state planners and community advocates have insisted that the projects could worsen the overbuilding problem and could lead to more Florida foreclosures, as there are already thousands of empty residential spaces that could accommodate the entry of new residents.

Florida is still among the most foreclosure-clobbered states despite a slowdown in foreclosure activity in January. Efforts of Florida counties to auction off foreclosure properties online are a sign that foreclosure activity continue to block housing recovery efforts in the state.

In February, Florida was third among states in percentage of households in foreclosure, up from its fourth-ranking in January. This meant that foreclosure efforts that were deferred by lenders in December and in January were pursued in February.

As of December 31 last year, 26 percent of mortgage loans in Florida were in default by one month or more and 20.4 percent were delinquent by three months or more.

As foreclosures and unsold nondistressed properties stay long on the market, they continue to deteriorate as many of them are not maintained, increasing the number of available fixer upper houses for sale for investors or owner-occupant buyers willing to remedy damages.

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