Foreclosure Discounts in South Florida Waning

by Isaac Benmergui, Esq on November 21, 2012

Buyers in Miami-Dade County aren’t getting the deals of two years ago on foreclosed homes. In September the margin of savings on foreclosed property was just 2.9 percent in the Palm Beach, Broward and Miami Dade counties. Last year at the same time, the discount stood at 6.8 percent; in August 2008 it was 22.7 percent – the peak of the foreclosure market in South Florida, according to Zillow.

Nationally, the foreclosure discount for September was 7.7 percent, a decrease from last year at the same time at 9 percent; in August 2009, the discount was 23.7 percent.

Zillow Chief Economist Stan Humphries believes the lower figures signal the closing gap between the foreclosure sale price and the traditional price, in direct response to a continued competition for cheap homes and a shrinking inventory of available homes.

In a press release Humphries stated, “the smallest foreclosure discount is found in places where competition for homes is so high people are willing to pay the same amount for a foreclosure re-sale that they would for a non-distressed home simply to take advantage of historic affordability.”

In some of the nation’s hardest hit areas for real estate, such as Phoenix and Las Vegas, there is literally no measurable difference between a home’s foreclosure sale price and an estimate of what it would be through a traditional sale.

Getting Legal Help

The law offices of Isaac Benmergui can help you with your legal real estate needs; call 780-800-2510 or email Isaac@benmerguilaw.com for more information or to set up an appointment today.

 

 

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