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Real Estate Investing Market Update - South Florida edition
As our real estate team travels the country teaching people how to investing in real estate we compile market updates to help our members understand the changing market.
This week we are holding free real estate trainings in the following South Florida areas:
Market Analysis:
Florida is home to a large proportion of America’s foreclosed real estate, and foreclosures are continuing to rise, with many banks desperate to sell off property and recover their assets - which means opportunity for real estate investors. This week’s news shows that:
- Real estate prices may be at or near their bottom, with May seeing a 14% price drop from Q1 2008 to a median price of $169K
- Sales have increased sharply in South Florida
- Floridians are optimistic about the long-term values of their real estate, and most feel that government programs will lead or are leading to a price recovery
- Miami has more buying opportunities than nearly any other area of the U.S.
- Foreclosure rates continue to rise, meaning more opportunities to buy property cheaply from the bank
Q1 2009 saw the average cost of a home dropping by 14%, the largest decrease on record over the same quarter a year before. Much of the drop can be accounted for by banks and lending institutions selling off foreclosed properties in order to recover part of their investment, and areas with lower foreclosure rates have been somewhat insulated from the price decreases, and overall, the price decreases are slowing, even with increased foreclosure sales. Some real estate experts believe that the price decrease may actually signal a stabilizing market, as banks become more confident in their ability to absorb losses on foreclosed properties.
Foreclosures rose again in April, hitting a record for the second consecutive month, with a whopping 1/374 of all homes being foreclosed upon.
Floridians generally feel upbeat about Florida real estate values, and believe that government programs are either having or are soon going to have a significant effect on Florida’s economic recovery, according to a University of Florida study.
Because banks need to sell off foreclosed homes in order to recover assets, they are prioritizing foreclosure sales, to the benefit of consumers. Specialized foreclosure listing websites in particular have helped drive homebuyers to less expensive homes in droves, particularly in markets like Florida, where low prices have helped middle-class first-time homebuyers with steady jobs.
Miami is a foreclosure hot spot, with foreclosures spiking by 111% in April, rising at a rate higher than all but three other markets. 1 in 86 Miami-Dade homes is in the process of foreclosure.
While prices continue to drop, and home sales throughout South Florida have accelerated, inventory remains huge, which means that prices are unlikely to go up for a time. Sales, however, have increased at a rate far higher in South Florida than elsewhere in the country - they increased by 101% in March alone.
Related Training:
Real Estate Investing
Real Estate Coaching
Foreclosure Deal Source
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Alex
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http://nkrealestate.com/