Regardless of the area of Florida, the sunshine state has a slightly more of its fair share of foreclosure homes. From the southern tip of the Florida keys, Miami, Jacksonville, Tampa, Saint Lucie, Saint Petersburg, Orlando, Hialeah, Fort Lauderdale, Tallahassee, Cape Coral or anywhere else, Florida foreclosure listings have been very prevalent recently.
As one of the few states with no personal income tax and very temperate weather, Florida has the 13th fastest growing population in the Nation. Growth coming from migrates from other states to its north. Currently Florida has the 4th largest population in the US trailing only California, Texas and New York. Anchor homes and population growth are just a couple of the reasons Florida has a higher default percentage than any other state. Anchor homes being the term for out of state residents that purchase second homes to use as second homes or retirement homes. These anchor homes are the first to go to foreclosure as they are generally not primary residents and during time of economic turmoil are the mortgages not paid.
Paid or not the anchor housing bubble had an impact on the housing prices in Florida like no other state with the average Floridian spending nearly 50% of household income on housing related expenses. This 50% real estate expense compares to 35% as the national average. When the real estate bubble finally burst the credit card defaults followed in the wake which gave Florida the added distinction of having the highest rate of defaulted credit cards to go along with its mortgage and foreclosure record setting numbers.
The values of homes in Florida are still in the process of resetting from their high of 2007 to a 7% annual decrease for the past several years. The decrease is followed closely by an increase of real estate sales that compensate for the decrease with a 21% increase in home sales from 2009 to 2010. This increase in sales volume will likely continue through the correction to the market and see Florida rebounding faster relative to other states that did not experience the real estate bubble to such a dramatic degree.
Real Estate values in Florida are forecast to be at their lowest point by the third quarter of 2012. Before the prices are completely corrected and the market has stabilized is the best time to make as many real estate investments as possible. Trying to time the market perfectly will leave the tentative home buyer and investor out of the market sweet spot. The prices of homes in Florida will continue to be affected by the percentage of and frequency of homes being foreclosed upon.
Floridian unemployment places additional downward pressure on the value of homes. With unemployment lingering at 11.9% it is a full 15 % higher than the national average. Per capita income in Florida ranks 24th in the nation which would indicate a lower than average unemployment but as the anchor home owners consolidate the construction business comes to a near complete stop. Unemployment among construction workers accounts for 40% of all unemployment across the state of Florida and sees no sign of a complete rebound within the next two to three years.
The higher percentage of unemployment means that there are a glut of FL foreclosure listings and opportunities for those looking at buying a foreclosure. Every price range, every county and city has been hit and will continue to feel the repercussions from the depressed real estate market, but also has a greater upswing relative to the percentage of decreased value and desirability of immigrants from other states to move into Florida which is higher than other states which indicates that Florida will experience a faster recovery than average, albeit at lower overall prices than the nation overall.
Foreclosure buying opportunities will continue as interest rates adjust on thousands of sub-prime mortgages that were taken on homes while downward pricing pressure eliminates the possibility of refinancing. Experts agree that this perfect storm of foreclosures will increase over the next several years.
You should be buying Florida foreclosure properties now. Read more about how to buy foreclosures and educate yourself on the communities you are most interested in buying a foreclosure and start shopping here for the foreclosure home that meets your needs. If you are facing a pending foreclosure call a local real estate professional and determine what types of options you have. Your options will depend on your particular situation. Other variables in Florida include where a home is located, density of that areas population, which can vary even dramatically in Florida, how much is owed on the home and how much the particular home is worth in today's market. Real Estate markets in Brevard County, Broward County, Duval County, Hillsborough County, Lee County, Miami-Dade County, Orange County- Palm Beach County and Pinellas County are the most stable in the state with some pockets of depression in each but with an average price which is more stable than the national average.
Q. What does all this mean to the real estate investor or home buyer looking at foreclosure homes in Florida?
A. It means that housing prices are at an all time low, rehabilitation costs are also reduced as general contractors see additional competition for the same job.
Q. Does the lower number of foreclosures mean that opportunities to buy a foreclosure are harder to come across?
A. No, In fact Florida has long been the land of opportunity for all types of real estate with additional possibilities presenting themselves in the recent mortgage crisis. Florida has historically been the most desirable destination for East Coast residents for both vacationing and relocation. The continued influx of new citizens require homes and a good investment in Florida today in a depressed market should result in a greater upside in the future.
Q. Has the average home in Florida lost more of its value than in other places?
A. Yes, but this is good news as the real estate market proves to more profitable in the years to come and opportunities are more plentiful in today's market. As People are more likely to let their home go to foreclosure and walk away the higher the percentage of lost equity and the more upside down they are on their mortgage. Recent Federal initiatives have also created an environment which has placed the majority of the blame on the banks and removed the financial stigma of being foreclosed on.
Q. Why would Florida be more affected by the mortgage crisis?
A. With a lower than average income, the fourth highest state population and millions of second homes in the state, Florida is uniquely positioned to offer great foreclosure real estate opportunities while offering a high return on investment and therefore less risk associated.Search Florida foreclosure listings.