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Repossessed Sales to Dominate Florida Property Market till 2012
June 16, 2010Article by Ray Withers
Repossessed property sales will dominate foreign purchases of Florida property until at least 2012, international property investment consultancy Property Frontiers. According to the firm, the low price of repossessed properties is the only reason that people are buying, because it reassures them that they will not lose out on the deal, and that therefore sales of open-market properties will not resume until confidence returns when the market is less volatile.
Director of the firm David Cox said:
“The US market is still very volatile with reports that the recovery is dying out as frequent as report that it isn’t. This doubt over the recovery is hampering people’s confidence in the market. This isn’t affecting repossessed and distressed properties, because they are being sold at such low prices that buyers are reassured that they cannot lose out on the deal. But normalised sales will not return until confidence increases, which will not happen until the market is far more stable.
“Ironically, the level of repossessions and distressed sales is one of the largest contributory factors in the volatility of the market, and it is unlikely to stabilise until they are greatly reduced. Repossession tracking agency RealtyTrac has said that repossessions will plague the US property market until 2013, but we believe that sales of repossessed property in Florida will be so great this year and next, that the number of repossessed properties could easily be at a manageable level by 2012.”
Cox continued: “Normalised market aside, the situation is a win-win for property investors. If repossessions are down by 2012 and normal sales increase, then their purchases will start to appreciate in value. If they don’t then there will be more chances to purchase repossessed properties and earn rental income until the market does normalise.”
Property Frontiers are currently marketing top quality property in Florida for sale, including the Village at Town Center Davenport, arguably one of the biggest bargains currently available.
The Town Center development offers top quality 2 bedroom condos just a few minutes from the Walt Disney resort, the new Wizarding World of Harry Potter, and many more attractions as well as all shops and amenities for just £35,000. The properties are being sold at 50% below their build replacement cost, which is 70% below their price at the peak of the market.
As an indication of how quickly property in Florida is selling, the second most recent development taken on by Property Frontiers, Waterside at Coquina Key has just sold out.
For more information contact Property Frontiers on +44 (0) 1865 202700.