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Repossessions to Dominate in Florida until 2012
June 2, 2010Article by Ray Withers
Repossessed sales are to dominate the Florida property market until at least 2012 according to international investment consultancy Property Frontiers. In a recent press release, David Cox, director of the firm 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.”
However, on this occasion the firm does not mind being wrong; in fact they say investors win whether normal sales return in 2012, or not.
“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,” said Cox.
The latest figures from Realty Trac show that the repossession problem is showing no signs of abating, with the total for May becoming the 12th consecutive month of over 300,000 repossessions, although overall repossessions were down 3%.
The figures did indicate that Property Frontiers may be proved right about Florida; according to the data, repossessions were well down across South Florida.
Broward had 6,719 homeowners in some stage of foreclosure in May, which was a 6 percent reduction on April and 41 percent on May last year.
Palm Beach County had 2,977 homeowners in foreclosure, a decline of 2 percent from April and 21 percent from a year earlier.
Property Frontiers are currently marketing top quality property in Florida for sale, including the Village at Town development in Davenport, which offers high-end, new build 2 bedroom condos a few minutes from Disney World for just £35,000.