Fewer Boca Raton Homes Underwater in the Third Quarter
Fewer Boca Raton Homes Underwater in the Third Quarter
The Boca Raton housing market continues to make headlines for its remarkable turnaround, and the latest report from real estate analysis firm Zillow revealed that the number of Boca Raton home owners drowning in mortgage debt is waning as the turnaround toward full recovery continues.
The number of home owners who owed more than the worth of their homes in Palm Beach, Broward and Miami-Dade counties dropped by 5% in September, down to just 41% of all homeowners in South Florida. In comparison, approximately 28% of home owners nationwide are underwater on their mortgages, down 31% from the last quarter, Zillow reported.
“The fall in negative equity means homeowners have additional options for refinancing or selling their homes,” said Zillow Chief Economist Stan Humphries in an recent article published in the Palm Beach Post “The housing market has found real momentum of its own, but is not immune from shocks to the broader economy.”
The improvement in negative equity signals a nationwide trend of improving home values, which has extended itself to Boca Raton short sales and foreclosures. Now, many home owners are taking advantage of the short sale process in an effort to salvage their credit, and short sales are now demanding prices increasingly on par with traditional sales in the area as buyers flock to South Florida properties looking for investment opportunities.
Home prices in Boca Raton are gaining momentum, and the sustained increase in prices has led many real estate analysts to believe that a housing recovery is likely to stay on course in the Palm Beach County housing market. The local economy is making significant gains, and new jobs added to the market are causing home values to skyrocket as more professionals look to South Florida for business opportunities. The upswing in tourism activity has also contributed to the rise in Boca Raton home prices, since many potential buyers see opportunities for using their homes as rental properties during the height of the tourism season.
Federal programs intended to help underwater home owners maintain ownership have also helped expedite the Boca Raton housing recovery. Now that there are fewer short sales on the market, the overall inventory of Boca Raton real estate for sale is down. Consequently, prices are on the rise, and the potential savings on distressed property sales is diminishing due to the dearth of available listings.
Sellers in the Boca Raton housing market are finally able to sell their homes without a short sale; however, real estate experts believe that it may take a substantial amount of time before they start to see a significant increase in profit from traditional sales. Nonetheless, real estate analysts also believe that some of the areas hardest hit by the housing crisis nationwide have the biggest potential for making significant gains as the economy continues to gain positive momentum.
Please let us know if you'd like more information on the Boca Raton housing market, or would like to explore the possibility of a Boca Raton short sale. We'd love to help you find the best Boca Raton real estate to suit your needs.
[cc_author style="bumber-b" author="gia"]
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