Foreclosures still impacting home prices negatively

September is the month when we usually enter a seasonally slow real estate market and it normally continues until about January of next year., August numbers show that foreclosure activity rose by 77% over the month of July. We expect continued record increases in the foreclosure rate in October. In total almost 34,000 foreclosures were filed in Florida, or one in every 243 households filed for foreclosure.

While some so-called experts predict that the Florida real estate market will recover by the end of 2008, each new monthly report shows we are not on the path to recovery.. certainly at least not yet. Reports also show that, based upon the number of home buyers that took out adjustable interest rate loans back in 2004 to 2006, many of whom are bow nowing into foreclosure, more and more home buyers will face financial difficulty and be forced into foreclosure.

We believe this adjustable rate mortgage issue will continue to keep forcing homes into foreclosure for many many months to come. We could, in fact be looking at as much as four more years of declining prices, not just one year.


Buyers can get it great deal on a house right now but for sellers who bought in 2004 to 2006, a big loss is inevitable if they need to sell anytime soon.