home-prices-foreclosures

It is a common notion that most home buyers have. They believe property values escalate over time. Hence investment in homes is definitely a profitable one, most believe. However, the notion has been turned on its head what with property values dipping for a while now. In some regions, homes are selling at prices which are less than what they were 10 years ago. Prices have crashed to historic lows.

In Palm Beach and Broward counties, there are nine areas where the average sales prices had been lower this July than what they were in July 1999. Take, for instance, Michael Keigans who lives in the Deerfield Beach Zip code sporting 33441. Here the price was six per cent off than what it was in 1999.

Keigans says that everybody believes home values appreciate and on selling them one could add to his net worth but now there are no such guarantees. Even a decade ago in Hallandale Beach zip code of 33023 prices ranged around $120,000. Now these homes are barely above $100,000. That means the owners who wish to palm off the properties will not benefit from the appreciation that their homes had clocked during the boom phase.

Similarly, in the area around Delray Beach, the average sales price in 1999 was $136,000. Now the price has nosedived to $81,500. It’s not that the home values have crashed in all regions of South Florida. So what has happened to the nine zip codes? Experts observe that there could be a disproportionate number of people who have taken sub prime loans.

A housing analyst in West Palm Beach, Brad Hunter, said that many homeowners bought properties that they could not otherwise afford. They faltered on payments of mortgages, many of which were adjustable rate. This led to foreclosures of their homes, which ultimately caused a crash in home values across the neighborhood.

Another housing analyst Mike Larson, said that people who had bought homes in the areas of nine zip codes have now lost a lot of money. They may not have been spurred by the sudden increase in property prices during the housing boom. There will be winners and losers when the real estate market goes through a cycle. In some regions in southern California, prices have plunged to such levels that prices of homes are less than what they were two decades ago. Experts say that it may take a while for the market to stabilize.

foreclosure homes

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