I wish I could say this was an April Fools Day joke.....but it's not. It's my March market report for Poinciana FL.
The following is the reality of the market in Poinciana.
There were 31 closings for March. This is actually a 50% increase from February. So that's a good thing.
The average sale was a 1857 sq ft home listed at $140,201 and sold for $137,609 in 131 days. $75 per sq ft living area. The sold price is down about 5% from February.
Out of those 31 sales, 21 one of them were banked owned properties(REOs). 4 were short sales. 2 were builder inventory and 4 were owned by Mr. and Mrs. Average Home Seller. This is right in line with my last market report, "Selling Retail listings in a wholesale market".
Now let's look at a few of the houses that came on the market today:
Property #1: 4 bedroom 3 bath pool home with 2013 sq ft living area built in 1987. This property was last sold in May of 2005 for $280,000. It came on the market today as a bank owned property priced at $149,900.
Property #2: 4 bedroom 2 bath home with 1563 sq ft living area built in 2005. Last sold new in June of 2005 for $186,000. Today it hit the market as a bank owned property priced at $78,900!!!
Property #3: 3 bedroom 2 bath home with 2003 sq ft living area built in 2004. Last sold in December of 2006 at $230,000. Today, you can purchase this home from the bank for $99,900!!
Folks, I said about a year ago that the first thing that needed to happen in Poinciana, before the market had a chance of turning around, was that buying a rental needed to make sense. Once this happens Investors will start buying up some of the inventory. Well look at those prices.
Do you think purchasing a 3 year old 4 bedroom home for in the mid 70s would make sense? This house would rent for about $750 to $800. Bought with a 20% down payment it would pay for itself. It makes sense.
So for all you Investors out there.....give me a call. It's time to start buying some single family rentals. Does that make sense?
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***The content of this blog is solely my opinion***