Cheap foreclosure homes can be found in Ocala, Florida where home prices fell further by 25 percent this year.
According to data from Florida Realtors, the home sales price median dropped to $92,100 in October, down by 25 percent from the peak price of $122,600 and down from the $96,300 median in September, the month when for the first time since 2004, home prices in Ocala fell below $100,000.
The large numbers of foreclosure sales, short sales and heavily discounted lower-end homes dragged down prices. Among metro areas in Florida, only the Fort Myers area had lower median at $91,600.
Foreclosure filings in Ocala increased by 31 percent in the July-September quarter compared to the same quarter in 2008, based on data from a California-based real estate research firm. More than 2,300 actions were filed, representing one household out of every 68 homes, much higher than the nationwide foreclosure rate of one out of every 136 residential units.
Because of the substantial fall in home prices and the availability of cheap foreclosure homes, sales of previously owned homes and distressed homes increased to 317 units, a record high in nearly 3 years and an increase of 63 percent from the 194 units sold in October last year. Additionally, October sales marked the sixth consecutive month of home sales gains on a year-over-year basis.
Bert Meadows, head of the Ocala/Marion County Association of Realtors, said that what drove the substantial rise in sales were the bargain prices and the high number of first time homebuyers who were beating the November 30 deadline of the federal tax credit.
The lower mortgage rates also attracted buyers. Based on records from Freddie Mac, mortgage rates on fixed-rate 30-year mortgage loans in October dropped to an average of 4.95 percent, the third lowest level recorded since 1971. Last week, mortgage rates fell further to an average of 4.83 percent.
Throughout Florida, house sales in October also increased by a staggering 45 percent, the 14th consecutive month that year-over-year increases occurred. Total sales were more than 5-percent higher than sales in September.
The home sales price median also dropped, falling by 17 percent from the $169,700 median in October last year to $140,300.
According to professionals and university researchers in the Florida real estate sector, home sales have been rising in many parts of the state because of cheap foreclosure homes, but they fear that job losses and insecurities will curb increases in house sales in the coming months.
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