Buyers are taking advantage of the cheap prices of condominiums in Florida’s foreclosure listings as more and more condo units got sold in the past few months. Sales of condo units surged in November of this year by 2% from one year ago.
The increase may not be much, but based on the current condition of the real estate market, a two percent rise in sales is actually a significant improvement. The surge in activities in the selling market proves that Florida is still one of the most favored areas among real estate buyers.
Retreating prices fueling demand
The primary reason cited by analysts for the revitalized condo market in Florida is the price. Units in foreclosure listing are being offered at highly discounted rates and these prices are expected to decline further in the coming year as sellers become more realistic with their expectations.
The low prices of properties are worrying some market observers since bargain prices will not do much for the recovery of the housing sector. However, prices are also the reason why buyers have re-entered the real estate market.
Double-edged impact of foreclosure home listings
It is true that the low prices of foreclosed real estate are holding back the housing market from a full recovery, but they are also positive in such a way that they speed up the sale of excess properties. And for now, reducing the supply of distressed real estate should be the main goal.
Analysts have predicted that foreclosures will delay the recovery of the housing industry, but these foreclosed properties are also the reason behind investors and independent buyers' interest in real estate. With foreclosure listings projected to expand further in 2012, expect more buyers to come into the market to take advantage of the huge discounts. This may push prices down further, but it will also help the market get rid of excess inventories.
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- Fort Lauderdale Foreclosure Listings Include Cheap Condos
- REO Property Listings Affect Chicago Home and Condo Prices
- Orlando Foreclosure Lists Driving Condo and Home Prices Down
- Miami Foreclosure List Is Gold Mine for Low-Priced Condos
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