Silver Lining Behind Gathering Clouds Of Foreclosure In Florida

Posted in Foreclosures, July 15th, 2008 |

Although clouds of foreclosure continue to gather many see a silver lining peeping behind it in Florida. It is impacting however on the real estate market causing prices to slump. This trend will continue throughout this year and perhaps spill on to 2009.

According to RealtyTrac 40,351 residential units in Florida were foreclosed in June this year. This makes Florida rank second in the national foreclosure race coming behind California. In California in June there were 67,000 foreclosure postings.

Florida foreclosure numbers showed a double jump from 2007. Its foreclosure rate calculated to 1:211 – this being the fourth worst in the nation and 2.4 times higher than the national median.

Among the 230 metropolitan regions, Orlando ranked 22nd. The weakest Florida real estate market was Fort Myers. Fort Lauderdale region stood 9th. However sale of single-family units and condos are slowly picking up. Those with schools nearby are attracting customers. There are more cash offers. The locality around Central Florida University is getting warm. Anee-Maire Wurzel of Coldwell Bank said that she had three offers on a house in the university area within a month. One offer came within five days of the property entering the market. Offer for another town house came within two weeks of its entry.

The increase in gas prices is showing an effect in the sense that people want to buy houses in areas from where they do not have to commute far to their places of work. Thus the preference is being given to downtown Orlando remarked Lloyd Page. Page is a senior vice president of Coldwell Banker Residential Real Estate of Central Florida.

Steve Kodsi is a condo developer based in Orlando. He said that with his father he has been in the real estate business right across Central Florida. Other members of the family like the cousins and uncles develop real estate in South Florida. Kodsi’s projects in South Eola region of Orlando are the hottest in his list. Steve commented, “In fact, if we only had the Sanctuary and Star Tower (condominiums), we’d be having a profitable 2008.”

It is too early to comment but perhaps the various measures being taken by the government, lenders and community welfare agencies are having an effect. Or perhaps economics is following its own course of turning around after a plunge. Whatever it may be –many are getting the chance to own affordable houses.