Many of the real estate reports in the press are based on national sales figures. However as we know, real estate is very local and can vary greatly from one city or state to the next. Here is a snap-shot of Dade County and the impact of foreclosures and shortsales during the first quarter of this year.
During the 1st quarter of 2010, of the 2,013 recorded Single Family Home closings 762 (38%) were foreclosures while 441 (22%) closings were shortsales. The average per Square Foot closing was $132 for the foreclosures, $232 for the shortsales and $214 for the “regular” sales. There is a similar situation with the Condo/Townhome Market: Of the 2,704 closings, 918 (34%) were foreclosures, 669 (25%) were shortsales. The average per Square Foot closing was $101 for the foreclosures, $193 for shortsales and $284 for the “regular” sales.
The good news for sellers is that the supply of foreclosures is decreasing (Single Family -68% and Condos -47% compared to the first quarter of 2009) which places less downwards pressure on pricing. The number of shortsales is also on the decrease.
The good news for buyers is that overall housing prices and mortgage rates are still extremely low. Affordability is at a historical high!
Needless to say, the market will continue to shift as the Fed terminates both the Mortgage Backed Securities buy-out and the Home Buyer Tax Credit Program.
You’ve heard it before: The time to buy is now!