Southwest Florida Real Estate - Foreclosure Update
Posted by Benjamin Dona on Friday, July 17th, 2009 at 6:13pm.
In the first half of 2009, the Cape Coral and Ft. Myers area took the number two spot in the nation for foreclosure related filings. Naples faired a little better, coming in at number twelve. Total filings were 25,926 for Cape Coral-Ft. Myers and 6,990 for Naples. The rankings were based on default notices, auction sales and bank repossessions.
Under normal circumstances, the rankings would be a dubious honor. But here in Southwest Florida, it may just be a blessing in disguise. The reason for this is twofold. First and foremost, our real estate market is booming, especially for single family homes. Year-to-date sales for 2009 are up 116% and our inventory of homes on the market has dropped 41% to just a 3.5-month supply. Last year at this time we had 8.9 months worth of supply available. Second, the foreclosures are helping to deplete the number of unsellable short sales on the market. Fortunately for our area, the banks are finally starting to deal on some of those properties, too. In June, short sales accounted for almost 16% of the total sales numbers, while foreclosures made up 56% and traditional sales accounted for the rest.
Investors are back in force in our market, as are normal second home buyers looking to get a little piece of paradise at a drastically reduced price. Many local first time home buyers are also participating in the fun by taking advantage of the $8,000 federal tax credit. In some cases, we are actually seeing bidding wars occur, as buyers are willing to pay cash and offer more than the asking price. In fact, if they are priced right, many homes are going to contract within just a few days of being listed.
The good news is, Southwest Florida real estate is back and looks to remain that way for some time to come.
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