Palm Beach Foreclosure Discounts Taper Off
Palm Beach Foreclosure Discounts Taper Off
After the housing crisis, the Palm Beach real estate market saw an influx of distressed properties for sale that gave many first-time home owners the chance to buy property at a discounted rate. However, according to a recent report, the savings on foreclosed properties is quickly diminishing.
A recent report issued by analysts at the real estate analysis firm Zillow found that buying a foreclosed property in Palm Beach County, Broward County and Miami Date counties only offered a savings of 2.9%. That amount of savings is paltry in comparison to what could be expected in the immediate aftermath of the housing crash.
In part, the reason for the closing gap in value among foreclosed properties and traditional sales is attributed to the housing shortage which has caused demand to accelerate. Buyers are often entering into bidding wars, and in order to avoid them, potential buyers are now making asking-price offers on prime pieces of Palm Beach real estate.
“The smallest foreclosure discount is found in places where competition for homes is so high people are willing to pay the same amount for a foreclosure re-sale that they would for a non-distressed home simply to take advantage of historic affordability,” said Zillow Chief Economist Stan Humphries.
Even if larger discounts were available on distressed properties, local real estate experts say that may not help all potential buyers to achieve their dream of owning Palm Beach real estate. In fact, it might make it more frustrating for potential buyers since they'll still need to qualify for financial assistance in order to make an offer. On the other hand, it's easy for investors to take advantage of distressed sales since they often pay for their purchases in cash.
The investors are looking to make long-term investments in Palm Beach real estate since prices are likely to continue increasing in the next few years. In the past, investors often flipped properties in less than six months in order to make a quick profit, but that is becoming much less commonplace.
If you'd like more information on Palm Beach homes for sale, please don't hesitate to contact us. We'd love to help you get to know the Palm Beach real estate market while helping you find the future home of your dreams.
[cc_author style="bumber-b" author="gia"]
image courtesy of iStockPhoto.com