You could say the market is booming again. Well, actually the foreclosure marketing is what I am referring to. Every day now you read a sad story of how someone took out the false equity they had, banks allowed it, and now the couple is in foreclosure because they can't afford the payments. The house now is worth 30-40% less that whay they have borrowed or invested in the home.
With over 168 golf courses in this area, the word FORE was used differently in the past. In April, 783 foreclosure notices were filed. That is six times what they were one year ago. These numbers include homes, lots, and commercial property. The bulk of this is single family homes with the largest part homes that are a year old or less (494). These are the 'investors' who bought new construction with hopes and sometimes promises of selling with a profit. So instead of a hole-in-one, they now face a double bogey.
Looking ahead, what will this mean to future sales and appraisals. I know appraisers take into account the terms of the sale, however, if inventory is so large that it takes this action and pricing to move the property then that is where the market is. I think these numbers may take a greater toll in the future in the under $300,000 market as these properties get disposed of by the lenders.
If there is a bright side, they represent a great buying opportunity for someone looking to take advantage of todays market.
Michael Polly, Vice President Denny Grimes and Company, Cape Coral, Fort Myers, and Lee County
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