Distressed Properties Sale Articles

Potential first-time home buyers in Florida need to take advantage of low home prices in foreclosure property listings now because it is a buyer’s market, according to financial planners in Florida.

Unlike other types of potential home buyers who need to sell their homes before they can move up or buy another house, first-time home buyers have all the factors in their favor.

Analysts said first-time home buyers just need to analyze two things: if they have cash for down payment and closing costs and if their employment is relatively stable.

If they get a loan insured by the Federal Housing Administration, they just need to come up with 3.5 percent of the home price while if they get a conventional home loan, they need to prepare about 20 percent of the home price.

Economist Hank Fishkind added that although the growth of foreclosure property listings have slowed down a bit, their volumes are still pushing down home prices.

Throughout Central Florida, the median price for pre-owned homes including properties in foreclosure property listings has declined by approximately 30 percent to below $200,000 compared to last year.

Home prices have gone back to their low levels in 2004. For new homes, prices have fallen by around 20 percent compared to their peak prices in 2006. Based on real estate sales data, prices for new home have gone down to just above $300,000.

Home affordability has never been as enticing as it is now, according to financial planners. A first-time homebuyer earning $34,947 in the first months of 2008 had only three-fourths of the earnings required to afford an affordable home, which was priced at $188,275 in 2008.

In the first months of this year, a first-time home buyer earning $35,334 in median income had nearly 100 percent of total income level required to buy an affordable home, which was priced at $141,971 in the last months of 2008. Foreclosure property listings have pushed down the prices of new homes and other existing homes considerably.

Aside from the low prices of properties in foreclosure property listings and low mortgage rates, first-time homebuyers can also make use of the federal tax incentive and other kinds of assistance provided by the state to first-time homebuyers.

Related Posts:

• Cheap Foreclosed Property for Sale in Florida
• Foreclose Houses Make Up 60 Percent of Sales in Florida
• Scheduled Foreclosed Home Auctions Rose in California
• Indianapolis Foreclosure Homes Boost Home Affordability
• Bidding on Foreclosure Property for Sale in Pennsylvania