Find out what’s happening in the property investment arena both in the UK and internationally
Property Frontiers Announce Florida Property to See No Price Growth Until 2014
July 22, 2010Article by Ray Withers
Florida property for sale is unlikely to see any increase in price until at least 2013, and most likely into 2014 international property investment consultancy Property Frontiers has announced. The firm believes that it will take until at least the 2014 the repossessed properties and short-sales from the market and, that only when these properties have been cleared will there be any chance of prices starting to rise again in the state.
David Cox, director of the firm said:
“According to the latest data from Realty Trac, Florida had the third highest level of foreclosures in the country in May, with one in every 32 households in danger of losing their home. This is even scarier when viewed against the fact that foreclosures were up 8% in the six months ending this May, compared to the same period of last year.
“That said: repossessions are slowing down again, as banks once again prolong the agony, with advanced short-sales and loan-modification procedures. This is why we are looking at more repossession this year than last year; because the banks decided to start foreclosing on the backlogs of bad-loans. Now they have apparently realised the extent of the problem, and how they could easily flood the property market with repossessed properties if they weren’t careful, they have went back into their box again.
“Maybe the real problem is the amount of control banks have over when to and when not to foreclose; it is their loans but it should still be the same for everyone. Anyway, I digress; the banks keeping turning the foreclosure tap on and off will likely see them trickle out foreclosures for at least another 2 years. After that the overstock of repossessed properties will need to be sold, before there can be any positive growth in the price of Florida property for sale.”
As an after-thought Cox added: “That is not to say that there won’t be microcosmic price growths in the standard resale market, especially on good homes in good areas, but this growth will be immeasurable with so many properties being sold at rock-bottom prices.”
Property Frontiers are currently marketing several top quality Florida properties for sale including the Village at Town Center Development, offering 2 bedroom condos in the heart of the touristic part of Orlando (within walking distance of Disney World and Wizarding World of Harry Potter) from £35,000. The firm has just taken on a new investment property in Tampa, offering 1 bedroom condos, tenanted to yields of 5.5% net, and with 50% finance available from £75,000.