Short Sales Stabilize Florida Home Values
Short Sales Stabilize Florida Home Values
Initially, short sales of Palm Beach property were less than popular; people avoided them since it took so long for banks to determine whether or not they'd go through with a deal. A waiting period upward of six month was not uncommon when short sales first hit the market, and since they usually sold for values higher than foreclosed properties, potential buyers didn't see the point in investigating what short sale properties had to offer. Now, there's been a dramatic change. Buyers are rushing to short sale auctions, and local real estate professionals have reported that potential buyers are increasingly open to the idea of purchasing a short sale property. Mostly, this is because new federal guidelines, a hot real estate market, and new technology for processing short sales have all worked to expedite the process.
As a result, fewer impatient buyers have cancelled short sale purchases. The influx of short sales on the market has also helped real estate values to stabilize, as the value of homes that aren't distressed properties continues to rise. People are eager to outbid foreign investors looking to buy in bulk, and competition among bidders has significantly increased the value of short sale homes within the past year.
According to a recent article published in The Gainesville Sun, the addition of distressed properties to an already fledgling housing market may cause prices overall to go down. However, short sale prices of Palm Beach homes are getting closer to market value. This is important to note since the addition of foreclosed homes would most likely create a downward trend in home value.
Since banks are now offering loan modifications, the influx of short sales is predicted to wane over the next few years. Nonetheless, the market is hot for short sale properties, and is likely to stay that way throughout the rest of 2012. Home buyers are looking at short sales as a way to salvage their credit scores, which is increasingly important since banks are raising the minimum requirements to obtain home loans.
If you'd like to learn more about Palm Beach homes or keep up-to-date with South Florida housing trends, please give us a call! Our team of experienced real estate professionals and short sale agents here at Palm Beach Premier Real Estate are familiar with the Palm Beach housing market and would love to share our knowledge with you!
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