As the sale of foreclosed house sales pick up hopes begin to rise in Orlando. An increasing number of foreclosure victims are coming to terms with reality and selling off their houses for a price that is often lower than the loan amount – it being much less than what it was bought for few years back.
Matt McDonald is one of them in Seminole County who sold his rental house for a loss of $15,000. He had bought it two years previously. Despite the loss, from another angle of view it can be said that this forced acceptance of reality is causing sales to pick up and giving a boost to the real estate market for the first time after quite some time.
The regional association of realtors in Orlando said that its members had been able to sell 1,335 houses in September marking an increase of 37% from September 2007. This is largely because of foreclosure sales. This year over year betterment was the first time in two years in reference to the core market that includes Orange and Seminole counties and also few neighbouring ones. The last increase of only 1.3% was noted in May 2006.
The average sale price of the houses sold this September increased by 5% from what it was in August this year. However it remained 10.6% less than the average of September 2007. Broker McDonald of Premier Realty Leasing analyzed that that the bank repossessed houses were selling the fastest.
This speaks of the improving health of the market. Industry specialists echo these sentiments saying that the houses that have completed the run of the foreclosure process are responsible for the growth in sale numbers. The price is low and those with good credit are taking advantage of the opportunity to clinch bargain deals. “The lower prices have really helped,” said Michael Smalley of Waterstone Mortgage.
The September sales brought down the number of units (single-family houses, condos and town houses) to 24,690 – it being 1,600 less than the peak statistics noted a year previously. Nevertheless there is still a backlog of 18 months – three times higher than the average pace. This denotes that the trend of falling prices will continue. This again shows that more houses are becoming affordable.
Housing experts are anticipating better sales before the year draws to a close. The credit crunch and mortgage restrictions that started in the fall of 2007 should be wearing off gradually by now.