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Foreclosures VS Home Values
What’s it going to take to stabilize home values? Here's my take on the situation. The Jacksonville real estate market continues to favor buyers with over 16 months of residential real estate currently for sale. Property values in Jacksonville and the immediate area have adjusted downward in response to a decrease in demand and a surge in short sale and foreclosure inventory. For example, there are currently 12,852 single family homes for sale in Jacksonville. 28% of those are listed with a title status of “pre-foreclosure” or “foreclosure”. In the last 30 days 757 single family homes were sold with 42% of those sales being pre-foreclosures, short sales, or foreclosures. The disproportionate number of foreclosure sales points to a trend among homebuyers to aggressively seek out bargains. In fact foreclosure sales have become a lucrative niche market for REALTOR’s specializing in in foreclosures. Sellers not in financial distress who need to sell are adjusting their prices downward in order to compete with the lower priced foreclosures. This activity is exerting downward pressure on home values which has resulted in an 11% decline in Jacksonville’s average sale price since Dec 07. A continued decline in home values will result in more short ... more
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