Foreclosure Business – Foreclosure Prices Rise In FloridaPosted in Foreclosure Business, by Courtney Allen
Foreclosure prices have risen by 35% in 2007. The Default Research survey released in South Florida has reported that foreclosures have risen up to 35% in 2007. In Broward and Miami-Dade about 1.75% and 1.45% have respectively entered the processes of entering into foreclosures. In 2007 Broward have had foreclosures increasing by 66% and Miami-Dade has had an up rise by 27%.
There has been a foresight that 2008 will also be a year prolific with foreclosures. Serdar Bankaci, the CEO of Default Research has stated that median home prices are still lowering as home inventories are on the rise. That is in fact the perfect ingredient for the development of more foreclosures in South Florida. The previous year saw an average of about 220 foreclosures on a regular basis.
All over the Sunshine State the average median home price has been estimated to be $221,000. South Florida however remains much more expensive where the median price rate is $346,800. The higher the price for real estate the greater is the hurt in the market economy.
Many investors in real estate have experienced a loss due to this foreclosure crisis in recent times. Many of them are even willing to walk away from investing in properties. Foreclosure sales in South Florida are listed there two to three weeks ahead of the competition. This area will witness rise in foreclosures as more ARMs gets to reset and people are unable to pay in time. The bank foreclosure lists taken from a survey across Southern Florida shows that foreclosures will continue to be on the rise and will be still unable to exit from the economy in 2008.
Bankaci has also stated that as he had resided in southern Florida since 2004 he has properly witnessed the great price shift and even observed the number of condominiums that rise up on a daily basis. But the crux of the problem is as the housing units stay on the rise the demand and money begins to dwindle.
There has been great demand for rental properties who offers his clients the latest and the most updated data on foreclosures. He even stress that clients buy and rent property even when they are undergoing the ravages of foreclosures. With foreclosure real estate sale for deducted rates the investors are jumping in to buy more properties. They are even renting them and receiving a return on their investments.