South Florida Cheap Homes Inventory Slims Down As Sales Pick Up
South Florida is displaying a renewed vitality as its foreclosures market opened up to new high levels with sales of cheap homes and single family units growing by 46 percent in March. Sales of condominiums also rose by 28.4 percent, according to the data. Sales of foreclosures and other distressed properties, though, seem to have an adverse effect on property median prices.
Foreclosure listings in Fort Lauderdale are generating a lot of interest in potential homebuyers as they exhibit significantly lower prices. In Miami-Dade County, home prices fell by 19 percent while Palm Beach prices are down by 24 percent. On the other hand, condo prices in both area increased by 30 and 17 percent, respectively. Recent reports contain mixed messages as the market continues to experience sharp fluctuations in its growth indicators.
Florida home foreclosure listings are still up with housing statistics in the first quarter, maintaining an increased level of 15 percent than the levels recorded in the last quarter of 2010.
Economists say that condominium sales are still sluggish compared to cheap homes and foreclosures mainly because condo home prices continue to climb up. For instance, although condo sales in Miami declined by more than 50 percent in the first quarter of this year, their prices, on the other hand, increased by 14 percent.
Realtors also report that closed deals for single-family units in South Florida registered a 28.4 increase, which is notably double than the statewide figures. They also said that although condo sales seem to be slower than the rest of foreclosures, still the increase in its sales is almost twice the increase of 24 percent for the entire state.
With these developments, homebuyers can now expect more opportunities across the state. Foreclosures listings still offer many cheap foreclosures to invest in for both investors and homebuyers. Prices of many foreclosed properties still remain at rock bottom prices and there are many bargains waiting to be found.
Brokers also say that homebuyers will find the market now more encouraging as mortgage interest rates remain at an all-time low. One factor that motivates homebuyers to purchase a property is the low interest rate on the mortgage.
The interest rate for its 30-year fixed mortgage loan is down from 4.97 percent last year to 4.84 percent in March this year. The interest cut is still significant, especially if you compute its average over a long period of time. Still, buyers are inclined to notice listings of cheap homes rather than start with big purchases.
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