Glooming Predictions Just Don't Fit

Posted by Eric Miller on Thursday, November 5th, 2009 at 12:48pm.

Each day another article appears predicting gloom in 2010 to the real estate market in South Florida. One recent article ended with "distressed properties will drive the market". Finally someone almost pointed out why the numbers will look like gloom for the market. Let's look at the issue, the price point that feeds the story of gloom and doom. If you want to see real numbers add a few zero's but this is to prove my point. If 10 properties sell in January 2010, and 9 of them are trashed out foreclosures needing massive renovations, then distressed properties have driven the market. If those properties sell for $30,000 each for a total of $270,000 and the one lone sale occurs in great condition, beautiful view, and in a superior location for $400,000. The doom predictor says the average price of the market has crashed and the price of a home is now $67,000. Over a period of time, the banks will get back to work, and really start moving these distressed properties, and when their gone, their gone. Using the example above, if there were only two distressed properties, the average price would be $173,000 and if there were no distressed sales the average price would have been $400,000. So as long as there are distressed properties at numbers that can skew the market they will, but if your not looking to buy one of those keep in mind once their gone their gone. Some say a picture is worth 1000 words, so with this in mind I did want to insert a photo of a recent $30,000 sale is the Fort Lauderdale area, the house is 582 sq. feet. and by the way it sold for $29,000. Please remember we are here to help you navigate this market, and find great deals at realistic prices.

Eric Miller is an award winning Florida Realtor, salesperson and broker. His website, provides an up-to-date guide to Fort Lauderdale Condos for sale, and the most complete buyer, seller and investor information for the Fort Lauderdale Real Estate Market.

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