Lower-priced Miami repo homes have been helping push up house sales. In March, sales of all types of homes increased by a whopping 43.3 percent from the previous month and by 43 percent from one year earlier to a total of 8,658 units.
Total sales in March this year marked the highest for the month of March since 2007, although they were lower by 27.1 percent than the average sales for the month of March from 1997 to 2007.
Increases in home sales during the month of March are typical, based on past sales records, but the 43.3-percent month-over-month increase is far above the average 30.7-percent increase between the months of February and March in the Miami area since 1997.
With the federal tax credits expiring and with mortgage rates and low prices at still low levels, more buyers were enticed to buy, making March of this year the 13th straight month that home sales in the Miami region rose year-over-year. Resales of detached single-family dwellings and condo units have increased year-over-year for the 16 months prior to March this year.
Sales of new homes, however, are still low because of fierce competition from lower-priced Miami repo homes. New-home sales accounted for only 7.1 percent of total home sales in March, far below the average percentage of 20-percent since 1997.
The sales and price effects of repo homes in Florida are still strong as foreclosures and repossessions continue to be a huge part of the housing market statewide. Every repossession house for sale affects the price and sale of another property situated nearby.
In March, a total of 8,643 homes across Florida became REOs, making up 9.44 percent of all REOs in the nation during the month. The total also accounted 14.63 percent of total foreclosure postings in Florida during the month.
The price median for pre-owned single-family houses sold in March in the Miami area was $182,600, down by 8.7 percent from one year earlier and down by 46 percent from $340,000, the peak price posted in June 2007.
The median price for pre-owned condos was $95,000, down by 11 percent from the $106,500 median in March last year and down by a sharp 56.6 percent from the peak price of $219,000 reached in July 2006.
Of the total home sales in March, nearly 34 percent were made by absentee buyers, who are either investors or second-home buyers. This relatively high percentage indicate that Miami repo homes are providing investment opportunities for people with cash or ready financing.
Author Resource:-> Original Post: Lower-Priced Miami Repo Homes Helping Drive House Sales on Repo-Homes.com.
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