Foreclosure Report: Almost 1 in 4 US Home Sales a Foreclosure During 2Q 2010

Many of my clients looking to buy are asking about foreclosures and short sales. With nearly 25% of all home sales in the US being a foreclosure during the second quarter of 2010, it does not seem like my experience is unusual.

How much longer can we expect high levels of foreclosure activity? According to Realty Trac, the market is on pace to work through distressed properties in about three years. Realty Trac thinks the distressed inventory will largely be worked through by the end of 2013.

How much of a discount to market is the buyer getting with a foreclosure? The latest data suggests a 26% discount when compared with homes not in the foreclosure process. During 1Q:10 homes in foreclosure sold for 27% below the market, according to industry data. So we can see, there's not much movement in price discount.

Is the percentage discount the same in every US home market? No. The highest discounts were in Ohio, Kentucky and California-- at about a 43% discount. So, you need to know your local market trends.

Lenders are expected to take over a record 1.2 million homes in 2010; this compares with around 1 million last year. To give an frame of reference, there were about 100,000 foreclosures in 2005 before the housing bust. And in a normal market, foreclosures account for less than 5% of sales, according to Realty Trac.

Individual markets and submarkets are important to follow when you are looking to buy or sell a home. A person who understands these markets is very important when taking on a big decision, such as buying or selling a home.

If you are looking to buy, sell, rent or invest in the South Florida real estate market, 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

Boca Raton FL real estate for sale and surrounding areas including real estate properties for sale in: Belle Glade, Boca Raton, Boynton Beach, Bryant, Canal Point, Dania, Deerfield Beach, Delray Beach, Fort Lauderdale, Hallandale, Hialeah, Hobe Sound, Hollywood, Indiantown, Jupiter, Key Biscayne, Lake Harbor, Lake Worth, Loxahatchee, Miami, Miami Beach, North Miami Beach, North Palm Beach, Opa Locka, Pahokee, Palm Beach, Palm Beach Gardens, Pembroke Pines, Pompano Beach, South Bay, West Palm Beach, Lang Realty

August New Homes Sales Still Slow In US

Annual sales of new homes in the United States were only 288,000 in August 2010. Sales were down 29% from a year earlier and were relatively unchanged on a sequential basis. This was the second lowest sales amount for the month of August on record. The median sales price of $204,700 was down 1.2% from August 2009 and the lowest amount since December 2003.

Sales of new homes increased by 54% in the Western portion of the US and they were up 15% in the Northeastern US during August 2010. However, this was offset by a 26% drop in the Midwest and an 11% decline in the South.

Foreclosures and other distressed properties (i.e., short sales), have been putting a damper on pricing and unit sales of new homes. As a result, builders are cutting back on adding new inventory to the market. Although home construction is up 25% from the bottom in April 2009, it is 75% below the peak new construction that took place in January 2006.

The number of unsold new homes in the US was 206,000 in the US as of August 2010. Experts believe this is about 8.6 months worth of supply. Therefore, it seems unlikely that construction will ramp up during the next six to nine months.

What does this mean to those looking to buy a home now?

It is still a buyer's market. Those looking for a new home have many options and can be choosy. However, for the best deals, home buyers should be focused on distressed properties.

If you are looking to buy, sell, rent or invest in the South Florida real estate market, 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

Boca Raton FL real estate for sale and surrounding areas including real estate properties for sale in: Belle Glade, Boca Raton, Boynton Beach, Bryant, Canal Point, Dania, Deerfield Beach, Delray Beach, Fort Lauderdale, Hallandale, Hialeah, Hobe Sound, Hollywood, Indiantown, Jupiter, Key Biscayne, Lake Harbor, Lake Worth, Loxahatchee, Miami, Miami Beach, North Miami Beach, North Palm Beach, Opa Locka, Pahokee, Palm Beach, Palm Beach Gardens, Pembroke Pines, Pompano Beach, South Bay, West Palm Beach, Lang Realty

A Delray Beach Rental Listing; Real Estate Search Engine

http://bit.ly/9gpQ67 <--please copy and paste into your Web browser

http://www.viewmylisting.com/property-for-sale/fl/delray-beach/3122-palm-dr/2670399/

Above is a link that will bring you to a listing in Delray Beach, Florida.

Two bedroom, two bathroom single family home offered to be rented on an annual basis-- click link above for pictures and more details.


If the home is not what you are looking for, but you are in the market to buy, sell, rent or lease a home:

The link below will bring you to a Webpage where you can search for listings.

http://bit.ly/aSVDo3 <--please copy and paste into Web browser

http://michaelfriedman.rmlsfl.mlxchange.com/?Page=7395217

Please contact me for futher information

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

Boca Raton FL real estate for sale and surrounding areas including real estate properties for sale in: Belle Glade, Boca Raton, Boynton Beach, Bryant, Canal Point, Dania, Deerfield Beach, Delray Beach, Fort Lauderdale, Hallandale, Hialeah, Hobe Sound, Hollywood, Indiantown, Jupiter, Key Biscayne, Lake Harbor, Lake Worth, Loxahatchee, Miami, Miami Beach, North Miami Beach, North Palm Beach, Opa Locka, Pahokee, Palm Beach, Palm Beach Gardens, Pembroke Pines, Pompano Beach, South Bay, West Palm Beach, Lang Realty

Some Encouraging News on Real Estate (Finally)

The S&P Case-Schiller home-price index for June 2010 may show the real estate market is beginning to recover. Karl Case, the co-creator of the index, said he sees, "a lot of positive stuff" in the report on home prices in June 2010.

The Case-Schiller index indicated property values increased 4.2% in June 2010 over June 2009. Mr. Case said the trend has been positive for almost a year.

In a radio interview, Mr. Case said that depending on the economy, he expected the US housing market to stabilize or possibly weaken a little during the next year.

“It generally takes four or five years to stabilize the whole market,” Case said. “We’re into about four now.” If Mr. Case is correct, now might in fact be a good time to purchase a home.

The Index looks at the US market as a whole and there may be sub-pockets that may not move in tandem with the overall market. Nonetheless, the Florida real estate market has been hurt more than other areas of the country as a result of swift price increases during the housing boom years. As such, the long-term value proposition of the Florida real estate market seems promising at current price levels.

I work with buyers, sellers, renters, landlords, investors, etc. Please contact me for all of your South Florida real estate needs.

Michael Friedman

Realtor, Certified Distressed Property Expert (CDPE)

Lang Realty

561-989-2100

Foreclosed Home Pricing- A Big Discount?

The Certified Distressed Property Expert (CDPE) designation prepares real estate agents to deal with short sales in an attempt to avoid foreclosure. The short sale is an important tool to help distressed homeowners avoid some of the credit issues that might arise with a foreclosure on their credit reports.

In Palm Beach County, Florida there have been 208,552 foreclosures year-to-date as of April 2010 with 48,384 in the month of April 2010 alone. During the first three months of 2010, foreclosures accounted for almost 30% of total sales in the country.

During 2009, more than 1.2 million property sales involved foreclosures; that is 25% above 2008 and 2,500% higher than 2005. With so much distressed property activity, especially in "bubble" areas, such as Florida, lenders are attempting to manage the inventory as not to flood the market with foreclosed properties. The reason behind this is an attempt to stablize prices.


What is the discount to market?

With such a large number of home sales being foreclosures, clients that are looking to buy have been asking me-- what is the percent discount to the market? The total savings in Palm Beach County and the nation as a whole is about 25%-30% less when compared with non-distressed homes; this includes both short sales and after bank possession foreclosures (REO).

Nationwide, the REO homes have sold for 34% less than non-distressed homes and short sales or pre-foreclosures have come in about at only a 15% discount. Why such a big difference between REOs and short sales-- the main reason is condition of the home. Foreclosures have more instances where the previous owner could not or did not want to maintain the home any longer.

What does this all mean?

Buyers looking for a good deal or savvy investors seeking good returns, there are opportunties to be had in the south Florida market. If you are looking to buy in the south Florida area, please feel free to contact me.

Distressed homeowners might want to consider a short sale. There is a chance to have the bank foregive mortgage debt and you will not have to deal with going through the foreclosure process. Distressed south Florida homeowners, please feel free to contact me in regards to short sale information and listings.


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

Should I Buy A Home Or Continue To Rent?

The current market conditions bode well for home ownership. The "buyer's market" continues even at a time when mortgage interest rates are at historically low levels. The south Florida residential real estate market seems to continue to let "air out of the housing bubble." These factors are helping to make it more affordable to buy a home in south Florida than to rent. Now is a great time to consider the purchase a home.

Why now?

"Buyer's market"- Taking advantage of a "buyer's market" along with low mortgage rates makes for a compelling case.

Favorable mortgage rates- Rates are currently less than 5%. Each 1% increase in rates can add as much as 19% to the cost of a home. If you qualify for a mortgage, now might be a very advantageous time to buy.

Steady cost- With a low mortgage rate, locked in for a 30-year period, you have a fixed cost related to the monthly mortgage payment-- rents can increase.

Tax deductions- Homeowners also enjoy a mortgage interest deduction, which allows them to deduct all the interest paid up to $1 million in mortgage debts. Tax credits are also available for owners who make certain improvements, such as energy efficiency.

Control- you can change the colors of the walls, landscaping, etc.

Also, your property could build equity and help hedge against inflation.

As a Realtor and Certified Distressed Property Expert (CDPE), I can help assist homebuyers and investors with due diligence, information on communities, determine buying power and negotiate on their behalf.

Please call me if you are thinking of purchasing a home in south Florida.

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