Why a Repo Property for Sale in Florida Is Good Investment

Every repo property for sale that gets closed in Florida represents one good investment decision, particularly for buyers who can afford to wait for several years before reselling at a great profit.

Great profit margins for real estate investments in Florida can be realized because of the low prices of homes being sold.

During the three-month period ended September, house prices in Florida dropped for the fifth consecutive quarter, driving buyers and investors to buy and pushing total home sales to new levels.

The median sales price for previously owned homes plunged to $145,400 in the third quarter, marking a drop of $40,200 from the median during the same three-month period last year. The sharp drop pushed sales to new levels as 44,345 houses were sold during the quarter, marking a substantial increase of 33 percent.

Sales of condo units in the July to September quarter also soared as the median sales price plunged by $54,000 to $106,100. A total of 14,797 units were snapped up by buyers during the quarter because of the attractive prices, marking a significant 56-percent rise from the median in 2008.

These sharp ncreases in sales of single-family homes and in condo units indicate that investors saw great profit prospects in acquiring low-priced residential properties in Florida. An investor finding and buying a relatively good repo property for sale in a good location because he has cash can even expect better profit prospects.

Tim Becker, head of real estate studies at the University of Florida, explained that while home price declines have been driving sharp increases in home sales, the price declines have also been contributing significantly to the rise in foreclosure filings. He added that mortgage borrowers whose homes have dropped in value considerably and who have no reasons to stay and bear their substantial negative equity oftentimes leave their homes and let the properties go into foreclosure.

However, Marla Martin, spokesperson for Florida Realtors, explained that there are indications that home price declines in Florida are slowing. She pointed out that the price median of $145,400 in the July to September quarter was 1.25 percent above the price median of $143,600 in the previous quarter.

According to Martin, the Fort Myers area, which experienced one of the highest rates of repo property for sale in the region, had posted a substantial 88 percent rise in sales of pre-owned single-family homes in the third quarter.

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