Anybody that’s been looking at foreclosures in the SW Florida area knows that the market had pretty much dried up for several months. The Banks had been holding on to their inventory because of the Robo-signing fiasco, but that seems to have changed. Some parts of SW Florida have seen home sales increase by up to 20% but prices are down. Some are blaming the Banks for dumping more properties on the market which in turn is driving prices down. Of course, if you’re in the market for a house, lower prices are obviously a good thing.
Home sales in Southwest Florida jumped by double digits in October but pushed pricing to near its Great Recession low.
The renewed push by banks on foreclosures and their rising use of short sales could be undercutting prices.
After clearing up some of their mortgage paperwork, big lenders operating in the region have been ramping up again on distressed properties. Some have been offering clients cash for short sales on their homes, where the lender takes less than is owed on the mortgage.
Sales rose 20 percent in the Sarasota-Bradenton market during October when compared with a year ago, with 801 homes changing hands.
But the median sales price dropped to $137,100, pushing the value to only slightly above its lowest point since the recession, $136,300. The September median was $156,800, so the October price represented a 13 percent drop from the previous month.
Sales also rose in the Charlotte County-North Port market, by 7 percent to 236 homes, while the median price of $90,000 was a 6 percent drop from a year ago and an 8 percent drop from September.
Around the state, sales rose 13 percent in Florida’s combined 19 major markets, with 12,145 homes changing hands.
The median price statewide saw a drop but not as pronounced as in this region. October’s $131,200 was a 4 percent drop from a year ago and a 2 percent decline from September.
If you’ve been sitting on the sidelines waiting for that good deal in Florida, now is probably the time to get out there and start making some offers. This could possibly be the bottom of the market and prices may not get any lower. Also, this is November and Winter is approaching quickly. They don’t call Florida the “Sunshine State” for nothing.
Filed under: Real Estate