Another reason to be more optimistic about the US Housing market is affordability of purchasing a home. The theory is as buying a home becomes more affordable when compared with renting, Americans will be lured back to the real estate market.
Home prices declined about 30% nationwide since 2006 and some of the hardest hit markets fell as much as 55%. The dramatic price reduction logically assumes homes are more "affordable" then they were a few years ago.
A recent study by Deutche Bank measures affordability in two ways: share of income Americans pay to own a home; and the cost of owning versus renting.
The analysis shows homeowners now pay 9.8% of thier income in after-tax mortgage, tax and insurance; this compares with 17.2% at the peak in 2007.
Also, the study found that in 28 out of 54 major housing markets it's now cheaper to pay a mortgage and other major costs than to rent the same home. In the distressed US markets, the study found owning a home costs less than renting by a wide margin. For example, it is 34% less to own a home than renting in Atlanta, according to Deutche Bank. In Miami, the study states, the average rent is $1,031 per month versus $856 per month it costs to carry a ranch house or stucco cottage as an owner.
The recent increase in investors that I am working with seems to indicate there is a spread between rents and the cost to own.
If you are thinking of selling or buying a home, or require more information, please feel free to contact me. Please text me your e-mail address to the number below and I will provide information requested.
Michael Friedman
Realtor, Certified Distressed Property Expert (CDPE)
Lang Realty
561-247-3550
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
Wednesday, April 13, 2011
Monday, April 4, 2011
Homes For Sale: Reasons To Be Optimistic About US Housing Market: Part I
Mike Castleman is the founder and CEO of Metrostudy, which has been collecting United States housing data for many years. Mr. Castleman predicts there will be a shortage of homes in the US soon, which will lead to rising home prices.
Metrostudy aggregates data on the number of homes that are vacant and for sale and how long it takes to sell all of them in each of the cities on which it collects data. The company supplies the information to its client base in order to try and determine whether a market has a surplus or a shortage of new housing.
In the 41 cities Metrocity covers, about 78,000 houses are either vacant, for sale or under construction. The category reached a peak of 343,000 units in mid-2006. Mr. Castleman says that if we had normal levels of buying the current inventory would sell in 2 1/2 months. If this were to be the case, Mr. Castleman says there would be an "incredible shortage" of homes and he predicts "that's where we are headed."
I have found that the more desireable communities that I serve have continued to have a dearth of "distressed priced" homes; and those that happened to enter the market were snapped up quickly. I think it depends on the area in which you are seeking to buy or sell a home. Certain segments of the South Florida market have a narrow inventory level and have not experienced as big a price drop after the housing "bubble" burst.
If you are thinking of selling or buying a home, or require more information, please feel free to contact me. Please text me your e-mail address to the number below and I will provide information requested.
Michael Friedman
Realtor, Certified Distressed Property Expert (CDPE)
Lang Realty
561-247-3550
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>
Metrostudy aggregates data on the number of homes that are vacant and for sale and how long it takes to sell all of them in each of the cities on which it collects data. The company supplies the information to its client base in order to try and determine whether a market has a surplus or a shortage of new housing.
In the 41 cities Metrocity covers, about 78,000 houses are either vacant, for sale or under construction. The category reached a peak of 343,000 units in mid-2006. Mr. Castleman says that if we had normal levels of buying the current inventory would sell in 2 1/2 months. If this were to be the case, Mr. Castleman says there would be an "incredible shortage" of homes and he predicts "that's where we are headed."
I have found that the more desireable communities that I serve have continued to have a dearth of "distressed priced" homes; and those that happened to enter the market were snapped up quickly. I think it depends on the area in which you are seeking to buy or sell a home. Certain segments of the South Florida market have a narrow inventory level and have not experienced as big a price drop after the housing "bubble" burst.
If you are thinking of selling or buying a home, or require more information, please feel free to contact me. Please text me your e-mail address to the number below and I will provide information requested.
Michael Friedman
Realtor, Certified Distressed Property Expert (CDPE)
Lang Realty
561-247-3550
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>
Wednesday, March 30, 2011
Homes For Sale: Waterfront Condo and Free Home Search: Ocean Front: Palm Beach: Atriums Palm Beach
The Atriums Palm Beach is a luxury building that is located on the ocean front in Palm Beach. There are tennis courts, basketball courts, community pool, children's pool, hot tub, and exercise room. There is a 24 hour doorperson, with underground parking spaces.
The Atriums Palm Beach has seven floors with units that boast 2-3 bedrooms and 2-3 bathrooms. There are 104 units per building and it was constructed around 1979.
The units in The Atriums Palm Beach have exposures and views of the ocean and/or intracoastal waterways. The 2/2 units are about 1,700 square feet and the 3/2.5 units are generally around 2,700 square feet.
During the past twelve months the average sold information is as follows:
2 bedrooms
2 bathrooms
1,856 square feet
$487,000 sales price
To search for homes in the Atriums Palm Beach:
Cut and paste the following link into your Web browser:
http://michaelfriedman.rmlsfl.mlxchange.com/?Page=7395217
If you are thinking of selling or buying a home, or require more information, please feel free to contact me.
Michael Friedman
Realtor, Certified Distressed Property Expert (CDPE)
Lang Realty
561-247-3550
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
The Atriums Palm Beach has seven floors with units that boast 2-3 bedrooms and 2-3 bathrooms. There are 104 units per building and it was constructed around 1979.
The units in The Atriums Palm Beach have exposures and views of the ocean and/or intracoastal waterways. The 2/2 units are about 1,700 square feet and the 3/2.5 units are generally around 2,700 square feet.
During the past twelve months the average sold information is as follows:
2 bedrooms
2 bathrooms
1,856 square feet
$487,000 sales price
To search for homes in the Atriums Palm Beach:
Cut and paste the following link into your Web browser:
http://michaelfriedman.rmlsfl.mlxchange.com/?Page=7395217
If you are thinking of selling or buying a home, or require more information, please feel free to contact me.
Michael Friedman
Realtor, Certified Distressed Property Expert (CDPE)
Lang Realty
561-247-3550
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
Tuesday, March 29, 2011
Homes For Sale: Case-Shiller Housing Index: January 2011: US Real Estate Pricing Pains Continue
As we have been discussing in prior posts, the South Florida housing market remains weak. According to the latest Case-Shiller Housing Index numbers, South Florida home prices fell for the sixth consecutive month in January 2011; falling to a new five-year low.
The Index's Miami metropolitan area, which includes Miami-Dade, Broward and Palm Beach counties — fell 1.3% between December 2010 and January 2011. On a year-over-year basis, home prices fell 4.7% in January 2011, according to the Case-Shiller Index.
According to the Case-Shiller Index, nation-wide home prices fell 1.0% on a sequential basis in January 2011. On a year-over-year basis the US housing market was down 3.1% in January 2011. Every market in the Case-Shiller Index experienced a sequenital decline in January 2011 with the exception of Washington D.C.
According to the Case-Shiller Index, US housing markets of interest were as follows:
January 2011 January '11/December'10 December/November
Metropolitan Area Level Change (%) Change (%) 1-Year Change (%)
Boston 152.07 -0.3% -0.2% -0.6%
Chicago 115.78 -1.8% -1.4% -7.5%
Miami 141.30 -1.3% -0.5% -4.7%
Minneapolis 113.21 -3.4% -1.5% -7.6%
New York 166.30 -0.9% -1.0% -3.0%
Tampa 128.52 -1.0% -2.7% -7.0%
Composite-10 154.65 -0.9% -0.9% -2.0%
Composite-20 140.86 -1.0% -1.0% -3.1%
As a local Relator, I am aware of the trends in the US market as well as in many of the communities in which I specialize. 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
561-247-3550
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
The Index's Miami metropolitan area, which includes Miami-Dade, Broward and Palm Beach counties — fell 1.3% between December 2010 and January 2011. On a year-over-year basis, home prices fell 4.7% in January 2011, according to the Case-Shiller Index.
According to the Case-Shiller Index, nation-wide home prices fell 1.0% on a sequential basis in January 2011. On a year-over-year basis the US housing market was down 3.1% in January 2011. Every market in the Case-Shiller Index experienced a sequenital decline in January 2011 with the exception of Washington D.C.
According to the Case-Shiller Index, US housing markets of interest were as follows:
January 2011 January '11/December'10 December/November
Metropolitan Area Level Change (%) Change (%) 1-Year Change (%)
Boston 152.07 -0.3% -0.2% -0.6%
Chicago 115.78 -1.8% -1.4% -7.5%
Miami 141.30 -1.3% -0.5% -4.7%
Minneapolis 113.21 -3.4% -1.5% -7.6%
New York 166.30 -0.9% -1.0% -3.0%
Tampa 128.52 -1.0% -2.7% -7.0%
Composite-10 154.65 -0.9% -0.9% -2.0%
Composite-20 140.86 -1.0% -1.0% -3.1%
As a local Relator, I am aware of the trends in the US market as well as in many of the communities in which I specialize. 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
561-247-3550
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
Tuesday, March 22, 2011
Homes For Sale: 1Q:2011: Vacant US Homes and Vacant Florida Homes
The US housing recovery will most likely be on hold for years. There are many reasons as to why, however, one that is becoming more glaring is the amount of vacant homes in the United States. The oversupply of homes should depress new home builds and take a while for the market to return to an equilibrium between supply and demand.
In March 2011, the US Census Bureau revealed that 1.6 million homes in Florida are vacant-- that is 18% of the total. The number of vacant homes increased 63% during the past 10 years.
Florida is the worst state in the nation for vacant homes; Arizona sits at 16%; Nevada is 14% and California is only 8%.
The worst hit county in the state of Florida is Collier, the home of Naples, which stands at 32% of the total homes being empty. Palm Beach comes in at 18%; Broward is 16%; and Miami-Dade is 12%.
The median home in Florida sold for $122,000 in January 2011, which is down 7% from 12 months earlier; this is less than half the price reached at the market peak. The oversupply and reduced influx of people to Florida are reasons to be cautious about the market. During the decade of 2000, the state saw just 5.7% population growth in the second half; the decade had a nearly 18% increase of population during the decade.
The aforementioned statistics are why some real estate experts think it will take a while for the Sunshine State's housing market to appreciate in price. One expert is quoted as saying it taking eight years for the vacancy numbers to reach single digits.
Ingo Winzer, a market analyst for Local Market Monitor is quoted as saying prices will drop another 5% in 2011 and an additional 3% in 2012. Celia Chen, a market analyst for Moody's Analytics says prices will fall another 11% and the bottom won't hit until mid-2012 for Florida; she predicts a market bottom for the United States during mid-2011.
If you are thinking of selling or buying a home, or require more information, please feel free to contact me.
Michael Friedman
Realtor, Certified Distressed Property Expert (CDPE)
Lang Realty
561-247-3550
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>
In March 2011, the US Census Bureau revealed that 1.6 million homes in Florida are vacant-- that is 18% of the total. The number of vacant homes increased 63% during the past 10 years.
Florida is the worst state in the nation for vacant homes; Arizona sits at 16%; Nevada is 14% and California is only 8%.
The worst hit county in the state of Florida is Collier, the home of Naples, which stands at 32% of the total homes being empty. Palm Beach comes in at 18%; Broward is 16%; and Miami-Dade is 12%.
The median home in Florida sold for $122,000 in January 2011, which is down 7% from 12 months earlier; this is less than half the price reached at the market peak. The oversupply and reduced influx of people to Florida are reasons to be cautious about the market. During the decade of 2000, the state saw just 5.7% population growth in the second half; the decade had a nearly 18% increase of population during the decade.
The aforementioned statistics are why some real estate experts think it will take a while for the Sunshine State's housing market to appreciate in price. One expert is quoted as saying it taking eight years for the vacancy numbers to reach single digits.
Ingo Winzer, a market analyst for Local Market Monitor is quoted as saying prices will drop another 5% in 2011 and an additional 3% in 2012. Celia Chen, a market analyst for Moody's Analytics says prices will fall another 11% and the bottom won't hit until mid-2012 for Florida; she predicts a market bottom for the United States during mid-2011.
If you are thinking of selling or buying a home, or require more information, please feel free to contact me.
Michael Friedman
Realtor, Certified Distressed Property Expert (CDPE)
Lang Realty
561-247-3550
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>
Tuesday, March 15, 2011
Homes For Sale: Quarterly Update: Woodfield Hunt Club in Boca Raton Florida
Woodfield Hunt Club has always been known as a premier family community of year-round residents. There are 325 single family homes. About 90% of the residents live in the community year-round.
The family-oriented theme for both Hunt Club I and Hunt Club II is highlighted with three-, four- and five-bedroom homes. Numerous lakes are located throughout both communities.
The community is zoned for the following public schools: Elementary School: Calusa; Middle School: Omni; High School: Spanish River
The community is located very close to several large shopping plazas and the Florida Turnpike.
During the past twelve months we estimate the average sold information is as follows:
4 bedrooms
3 bathrooms
3,491 square feet
$685,000 sales price
To search for homes in Woodfield Hunt Club:
Cut and paste the following link into your Web browser:
http://michaelfriedman.rmlsfl.mlxchange.com/?Page=7395217
If you are thinking of selling or buying a home, or require more information, please feel free to contact me.
Michael Friedman
Realtor, Certified Distressed Property Expert (CDPE)
Lang Realty
561-247-3550
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
The family-oriented theme for both Hunt Club I and Hunt Club II is highlighted with three-, four- and five-bedroom homes. Numerous lakes are located throughout both communities.
The community is zoned for the following public schools: Elementary School: Calusa; Middle School: Omni; High School: Spanish River
The community is located very close to several large shopping plazas and the Florida Turnpike.
During the past twelve months we estimate the average sold information is as follows:
4 bedrooms
3 bathrooms
3,491 square feet
$685,000 sales price
To search for homes in Woodfield Hunt Club:
Cut and paste the following link into your Web browser:
http://michaelfriedman.rmlsfl.mlxchange.com/?Page=7395217
If you are thinking of selling or buying a home, or require more information, please feel free to contact me.
Michael Friedman
Realtor, Certified Distressed Property Expert (CDPE)
Lang Realty
561-247-3550
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
Sunday, March 13, 2011
Homes For Sale: Why Are More Real Estate Buyers Doing Cash Deals?
I have noticed the trend in my own business-- more cash deals. The National Association of Realtors recently published data indicating 32% of homes bought in the US during January 2011 were cash buys compared with 26% a year earlier. I am writing up a cash deal now that started out as one that would be lender financed. Why is this happening more often?
We have discussed weak appraisals in the publication in previous postings. Prices remain weak and lenders are using foreclosures in compararable data. The banks want to be sure they will have adequate collateral and are using discounted foreclosures in their assessment of worth.
Sellers are more motivated by cash deals for this very reason. The seller is not held up by appraisals causing deals to fall through. Therefore, sellers are more motivated to take less money for the increased likelihood the deal will be completed.
Some condominium buyers cannot get financing as a result of falling short of Fannie Mae and Freddie Mac requirements. These agencies will not guarantee mortgages in condo communities where 70% of units in a development are not owner-occupied. Fannie and Freddie guarantee most of the mortgages issued in the US.
Other potential borrowers do not want to be subjected to the onerous process of being approved by a lender. Banks tend to want to look into every aspect of a potential borrower's finances; there are many pages of paperwork to be filled out; and people who can afford to self-finance sometimes decide to opt out of this process.
Many distressed properties do not even qualify for financing because they are in such poor condition.
Real estate investors are beggining to be more active, in my opinion, and the cash only incentive allows them to buy more cheaply. In addition, the investors do not want to have to worry about interest and payments if they can avoid it.
If you are thinking of selling or buying a home, or require more information, please feel free to contact me.
Michael Friedman
Realtor, Certified Distressed Property Expert (CDPE)
Lang Realty
561-247-3550
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
We have discussed weak appraisals in the publication in previous postings. Prices remain weak and lenders are using foreclosures in compararable data. The banks want to be sure they will have adequate collateral and are using discounted foreclosures in their assessment of worth.
Sellers are more motivated by cash deals for this very reason. The seller is not held up by appraisals causing deals to fall through. Therefore, sellers are more motivated to take less money for the increased likelihood the deal will be completed.
Some condominium buyers cannot get financing as a result of falling short of Fannie Mae and Freddie Mac requirements. These agencies will not guarantee mortgages in condo communities where 70% of units in a development are not owner-occupied. Fannie and Freddie guarantee most of the mortgages issued in the US.
Other potential borrowers do not want to be subjected to the onerous process of being approved by a lender. Banks tend to want to look into every aspect of a potential borrower's finances; there are many pages of paperwork to be filled out; and people who can afford to self-finance sometimes decide to opt out of this process.
Many distressed properties do not even qualify for financing because they are in such poor condition.
Real estate investors are beggining to be more active, in my opinion, and the cash only incentive allows them to buy more cheaply. In addition, the investors do not want to have to worry about interest and payments if they can avoid it.
If you are thinking of selling or buying a home, or require more information, please feel free to contact me.
Michael Friedman
Realtor, Certified Distressed Property Expert (CDPE)
Lang Realty
561-247-3550
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
Subscribe to:
Posts (Atom)