Real Estate Prices on the Rise

For local information about the Destin, Santa Rosa Beach, Niceville, and Crestview areas, contact me at MykeSaysSold@aol.com  850-305-6256

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Foreclosures Not Huge Savings Especially Places Like Destin or 30A Florida

While “foreclosure” remains a buzzword for bargain seekers, a study finds that
the actual discount off a “normal” price is far less than it used to
be.
According to a study by Zillow, the national average discount of a
real estate owned (REO) property compared to a non-REO was only 7.7 percent in
September – a sizable change from the 23.7 percent average discount that peaked
nationally in August 2009 and less than the average 9.1 percent discount one
year earlier.
In some areas of Florida, REOs aren’t a bargain at all.
Zillow included three Florida metro areas in its analysis and claims an average
REO savings of only 2.9 percent in the Miami-Fort Lauderdale market – a
significant drop from the peak of 22.7 percent in August 2008 and a notable
decline year-to-year; in September 2011, a South Florida REO sold for 6.8
percent less.
In Tampa, a REO in September 2012 sold for 9 percent less
than a non-REO sale, down slightly from the 9.6 percent discount one year
earlier, but significantly lower than the peak 29.1 percent discount recorded in
November 2008.
In Orlando, the REO discount of 4.6 percent rose slightly
year-to-year; in September 2011, it was 2 percent. However, both numbers are
down from the peak 24.4 percent discount for a REO recorded in January
2010.
“The smallest foreclosure discount is found in places where  (DESTIN/30A corridor, Florida)“, says Zillow Chief Economist Dr. Stan Humphries. “People are willing to pay
the same amount for a foreclosure re-sale that they would for a non-distressed
home simply to take advantage of historic affordability.”

Year-over-year foreclosure discounts fell in roughly three-quarters (76.9 percent) of metro
areas analyzed, and all metros are down from their peak. Nationwide, foreclosure
discounts reached their height in 2008 and 2009, and in some areas peaked at
more than 30 percent.

© 2012 Florida Realtors®

Underwater Mortgages Rise

The percentage of homeowners with mortgages who owe more than their homes are worth continued to rise during the first quarter, but only 1 in 10 of underwater homeowners are seriously delinquent on their loans, according to estimates released today by real estate search portal Zillow.

Zillow — which looks at outstanding loan amounts on individual properties, and compares them with estimated valuations for each home that are generated by computer models — estimates that 15.7 million homes were underwater during the first three months of the year.

That’s 31.4 percent of all homes with mortgages, up from 31.1 percent during the last three months of 2011 (not all homeowners have mortgages).

Although just 10.1 percent of underwater homeowners were more than 90 days behind on their mortgage payments, that represents nearly 1.6 million homes that could eventually hit the market as distressed properties.

Numbers like that can put fear into the hearts of would-be homebuyers, since distressed properties sell at discounts that can drag down home prices. Those effects are highly dependent on individual market conditions.

Zillow estimates that nationwide, about 2.4 million underwater homeowners owe more than double what their home is worth. In the Las Vegas metro area, 26.8 percent of homeowners with mortgages are that deeply underwater — nearly 90,000 homes.