S FL: Homes For Sale: Foreclosure and Short Sale: South Florida Has Many Distressed Properties; To Pressure Homeowners Looking To Sell

According to Moody's Analytics, there were 15 million underwater homeowners in the United States in the first quarter of 2010. More than half, 7.8 million, owed 25% more than what the home is worth.

Moody's estimates almost one-third of the total (more than 4 million) underwater homeowners owed more than 50% of the homes' value. The worst US markets for underwater homes were 1) California (424,000), 2) Florida (121,000) and 3) Illinois (121,000).

The bottom line is the economy is in a holding pattern until these figures can be reduced, in our opinion. Homeowners cannot sell and move up and home improvements are being delayed. We believe this trickles down throughout the whole US economy.

During previous recessions, the housing industry and consumer spending strengthened the overall economy. To put in perspective the current lull in housing, we turn to the National Homebuilders Association's annual homebuilding estimate of 600,000 for 2010. This compares with the US output in new homes of 1.7 million in more normal times. The National Homebuilders Association's economist, David Crowe, does not expect home building to return to its normal levels for another three years (editor's note: estimated to be 2014)

In regards to home prices returning to a point where their mortgage balance was even with current property values-- estimates have put an estimate of 11 years for that to happen. The assumption behind the 11 year estimate is if prices were to rise at an annual rate of 3% per year. we believe an average of 3% annual price appreciation during the next 11 years to be a likely scenario.

I think it is very important for sellers to understand their respective local markets. This will allow them to competitively price their properties and garner the most interest in what seems like a lengthy buyer's market in South Florida.

If you are thinking of selling or buying a home, please feel free to contact me.

Michael Friedman
Realtor, Certified Distressed Property Expert (CDPE)
Lang Realty
561-989-2100

http://michaelfriedman.rmlsfl.mlxchange.com/?Page=7395217 <--property search link to cut and paste into your Web browser

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