Foreclosed Homes for Sale | Foreclosed Home Auction Sales Growing in Orlando

Foreclosed Home Auction Sales Growing in Orlando

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Home sales in Orlando, one of the cities hardest hit by foreclosures, have been increasing as shown in growing foreclosed home auction sales in April. Based on the city’s housing market data, home sales increased by 38 percent compared to housing sales in April 2008.

The Orlando housing market has been declining since 2006 when large numbers of houses started to be repossessed by lenders and lumped into their foreclosed home auction inventories.

Now, home sales have picked up although house prices are still in their bottom levels and sales of condos are still generally weak.

Sean Snaith, head of the University of Central Florida Institute for Economic Competitiveness, said that he cannot say if the market has reached the bottom because he has not seen some stabilization in home prices. He added that Florida has been particularly clobbered by the foreclosure crisis and the city of Orlando is not exempted, even if it is the location of Walt Disney World Resort.

Short sales and foreclosed home auction sales have been pulling home prices down.

In a recent foreclosure data released last week, Florida is still among the top in state foreclosure filings and in foreclosure rates. In May, one unit in every 148 houses has received a foreclosure action. Nearly 59,000 houses received foreclosure notices and more than 6,000 have already been repossessed by lenders, ready for foreclosed home auction sales.

The increase in home sales is being driven by short sales, low home loan rates and the availability of low-priced bank-owned properties in foreclosure auctions.

Another factor is the availability of the federal tax credit to taxpayers buying a home for the first time. The approaching deadline of the tax credit, which is the last day of November, is also a factor. Many prospective homebuyers want to beat the deadline.

In Orlando, homes in the $100,000 price range are getting the most offers. They are also getting the most number of bids in foreclosed home auction proceedings.

At the high end of the market, an example of a property being sold is a 10-bedroom 19,000-square-foot multi-structure residential property in a gated community on Lake Sheen, which is priced at $10.4 million.

At the lower end of the market, an example of a home for sale is a 4-bedroom 1,696-square-foot house priced at $141,900.

Residents of Florida are hopeful that tourism will pick up again so that foreclosed home auction properties get sold, contributing to the stabilization of the city’s housing sector.

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