Lisa Simpson
Aug 18,2008
In: Foreclosed Homes

Florida Foreclosed Homes

Increasing number of Florida foreclosed homes are causing the real estate to slump. It has cost a loss of $150 billion in the span of one year. The trend is expected to continue right through 2009 according to state government officials, without any respite from increasing number of Florida foreclosed homes. The root cause for the record decline by 6% of the value of both residential and commercial houses is traced to the spike in Florida foreclosures. Market values are apprehended to fall by another 5% in the forthcoming year – thanks to Florida foreclosed homes. This was reported by CBS4, News partner of Miami Herald in its Wednesday news coverage. Taking into account the spate of Florida foreclosed homes, experts had predicted half the numbers. $50 worth of new constructions has mired the situation. It is expected to drop by 35% in the coming year. Property value is apprehended to go down by another 4.92% because of the lashing waves of Florida foreclosed homes. After the debacle, according to the law of economics the crisis is expected to taper off. Florida foreclosed homes are being offered for peanuts. This will lead to an increase in buying activity causing a change in the mood of the market. But this is all speculation – the reality today is increasing Florida foreclosed homes.

The Florida foreclosed homes are leading to ‘fire sales” according to Amy Baker who is the chief economist of the Legislature. Florida foreclosed homes are being offered at rock bottom prices. Something is better than nothing and this is giving rise to hopes that the real estate market will stabilize.

Florida foreclosed homes are affecting the government by causing a reduction in tax collection. The government has more work to do but less funds with which to execute it. It is affecting funds meant for schools and other welfare activities. There is a 0.3% decrease in the taxable value of properties. Schools will get 1.5% less than before – adding up to a reduction of $140 million across Florida. The only way out is for the Legislature to intervene.

For many, the surfeit of Florida foreclosed homes is opening up opportunities of owning a house at affordable price. This is the great American dream.

Florida and California are included as top rankers among the 16 top of the 20 metro areas in USA that are badly affected by the housing crisis.