For atleast past four years, Florida has enjoyed an unprecedented residential real estate boom, largely because of a surge in investment and speculative activity. Buyers from around the globe have decided that Florida real estate - primarily condominiums, but also single family homes - is an ideal investment, especially with prices rising 10% to 25% annually.
From downtown Miami to the Panhandle beaches, new condominium projects have been "selling out" almost as soon as they are announced as developers take reservation deposits on units they won't have to deliver for 18 to 36 months. however in some fast-selling multifamily projects, more than two-thirds of the people putting down reservation deposits have been investors and speculators, hoping to "flip" their units to a new buyer when the development nears completion.
It's a strategy that's worked well for investors and developers alike. But research now indicates that the party's over - and the risks of continuing to bet on Florida real estate this year far outweigh the potential rewards.
Overvalued properties, higher development costs, rising interest rates were the primary reasons why there is a sudden change of market environment that once they have enjoyed now into its tramps and hope not will flatter into full debt and properties will end up 200 percent lower the original price, oftentimes we seen effort of owners to stop foreclosures.
Now, Homeowners are behind payment and of the eve of facing foreclosure in Miami, some companies like Dade county Florida is looking to directly purchase from the owners. Miami is the area of where have really been hit hard and homeowners has to stop foreclosure on their crisis. As home values dropping and in order to sell a house fast homeowners need plenty of equity. We can’t stop Foreclosures which are at a record high since the early 80’s in the current housing market. Florida has taken a severe hit over the years and homeowners are the beneficiary of this crisis. One city that is being bombarded with foreclosure is the Miami - Dade area of Florida. I guess there is no way we can stop foreclosures.
The report of zillow.corn, a real estate Web site, revealed that with foreclosures soaring, nearly 20% of the nation's home sales in 2008 were of bank-repossessed properties. Another 11% were short sales, in which homeowners owed more in rnortgage debt than their horns were worth. And Miami is in the 14th position and Fort Lauderdale is in much disaster post at 7th.
It is unlikely to see areas in Florida of where flock of tourists and good tropical weather has been affected much by bad debts of the homeowner resulting to repossession of properties. Nevertheless it is contributed to the interjection of fees that were considered illegal. In order to stop foreclosures is to think wisely if we can really allow ourselves to over killed by too much fees and penalties imposed by the real estates owners. Hence in choosing good neighborhood it does not come into its prime consideration that it have to be where most good houses are, of where nearby places are restaurants and hotels, we have to consider that we there are those areas which are developing and in time soon the place you have purchased will soon be valued like of those near the shore line.
Jessica
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