Broward County is starting to turn things around as evidenced by the decline in the number of houses which are being sold at a loss.
The decline is attributed to the aggressive nature of investors which are looking to sell homes that they renovated to traditional buyers which are looking to buy houses in the market. Such activity is increasing the prices of houses and also bringing in the profits in the real estate industry.
In August, the number of houses sold for a loss has dropped to 29 percent which is way off in comparison to the 46.8 percent a year ago. This has been the story every now and then since 2009 where the total rate of houses which have been sold at a loss has been fluctuating between 54 and 47 percent; until the huge drop.
According to Svenja Gudell, Zillow’s senior economist in its base in Seattle, such rates would fit perfectly as evidence of a real estate industry which is turning itself around.
In the same month, the median price for each house which is being sold in the market is up by 26 percent from a year ago. This amounts to $270,500. This is based on a report made by Greater Fort Lauderdale Realtors. This recent climb in the prices has been the first after six years of being in the downside. Investors have been given the credit for the recent uphill climb in the prices which can now be compared to the prices that the same houses have been sold in 2008.
Daren Blomquist, the spokesperson for a foreclosure listing firm called RealtyTrac Inc., mentioned that the investors are now serving their true purpose.
“They improve the properties; they improve its value in the market. Prices become the same to those which are in another part of the neighborhood,” Blomquist added.
An example of this is Raymond Balassiano, a member of Distressed Real Estate Institute which is based in Deerfield Beach and an investor himself, bought a $58,000 worth of property. He made little tweaks and fixes, and painted the insides and outsides of the house, and then sold the property for $106,000 four days after he was able to finish the renovations.
A comparable sale was also done and recorded in the books.
Balassiano says, “The house looks brand new. Every person has the right to live comfortable under a roof.”
On the other hand, there are still other homes which are being sold at a price which below the mortgage price. However, the point of the rise is to recover equities which have been lost and urging some homeowners to sell their houses.
In Coral Springs, a house worth $312,500 was sold by Ron Rosen, a broker in Fort Lauderdale. His client was finally able to break a deal after the huge hit in the industry. Frustrated sellers from the past are now looking to sell.
“A certain number of people have been in the market for a while, in spit a 30 percent deficient,” says Larry Revier, an agent in Broward and Palm Beach Counties for RE/MAX Preferred, “Now, they have improved significantly to be able to move to another property.”
The prices in the state reached its highest late in 2005. This forced buyers and owners to adjust their mortgages. As this reset, the interest rates became higher which made the homeowners incapable of paying thus the foreclosure rates increased, while the value declined sharply every year.
After 2005, the value of houses dropped by as much 50 percent.
Individual investors are not solely responsible for the improvement. Big investment firms such as Blackstone Group and Waypoint Homes deserve equal credit.
Due to the competition between these investors, most would overbuy the houses available to the public.
McCabee says, “As long as people will be able to buy these properties at a price which is lower compared to 2006 and 2007, they feel they are getting a good deal.”
“People will continue buying, and I do not see it stopping anytime soon,” McCabee added.