FNMA Bank Foreclosures, Existing Home Sales Fell in Florida

by Donald Hanz on States

The number of existing dwellings sold in Florida for the month of November recorded a decline compared with year-ago levels. This includes foreclosed properties like FNMA bank foreclosures. However, foreign property buyers and investors got involved in a number of purchase transactions involving condominiums which resulted in increased sales for this segment in the same month.

Boca Raton bank foreclosures for sale and housing resales in various parts of the state dropped for the month compared with November 2009, with statewide decline pegged at 15%. Meanwhile, in Palm Beach County, sales of single family houses dropped by 5% for November 2010 compared with the same 2009 month. At the Treasure Coast region, housing unit sales declined by 34% during the same period.

Although purchase transactions involving foreclosure homes in Florida and other existing residential properties recorded a decline in November, the number of condominium units sold for the same month rose in most areas of the state. Statewide, condo sales jumped by 11%, while in Palm Beach County, the rise was at 12%. Treasure Coast, on the other hand, recorded a decline in condo sales although not as high as seen in single family residences, with condominiums posting an 8% sales drop for the month.

According to housing market experts, several factors contributed to the decline in Florida's FNMA bank foreclosures and existing dwelling sales. One factor is the moratorium implemented earlier on the sale of bank owned houses. Another is the end of the federal government's tax credit program which inflated house buying figures last year until the first half of the current year.

However, analysts did admit that despite these factors, the lack of interest in listings of bank foreclosed homes by property buyers has more to do with the struggling residential property market of Florida. According to them, even without the sales moratorium and the tax credit, the state's housing sector is likely to still be in a downturn.

Economists and housing industry analysts state that as long as unemployment is at its peak, not a lot of people will be interested in purchasing residences, even low-priced houses such as FNMA bank foreclosures. They further added that prices of condominiums and single family houses will continue to decline until the job market improves.

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