Repossessed Houses for Sale below $300,000 in Florida
In May, home sales in the Florida counties of Sarasota, Charlotte and Manatee comprised largely of repossessed houses for sale and other homes priced below $300,000, according to real estate records in Florida.
In Sarasota, 78 percent of total houses sold in May, including repossessed houses for sale, were priced below $300,000. Around 12 percent of total sales were made in the price level of $300,000 up to $500,000 and about 10 percent of houses sold were priced above $500,000.
The share of houses priced below $300,000 in total sales was even more staggering in Charlotte and in Manatee.
In Charlotte, 89 percent of all homes sold were priced below $300,000 while barely one percent accounted for sales of homes priced above $500,000.
In Manatee, 83 percent of total home sales were under the $300,000 price range and around six percent of sales were for houses priced above the $500,000 level.
Real estate analysts explained the significant percentage of lower-priced homes in the total sales of May as a result of a change in the attitude of home buyers. Many buyers no longer put so much importance on the size of the homes they buy. They now are very conscious about the affordability of the homes and their ability to sustain payments.
In many markets across the U.S., according to a lifestyle report, homebuyers are getting conscious about the time, cost and effort to maintain larger homes.
Besides the lifestyle and attitude factors, the under-$300,000 home price level also fit the requirements of affordable housing initiatives such as the federal tax credit program and the FHA loan program. The income limits of these federal government programs push buyers to the lower end of the housing market.
Another factor is the increase in number of first-time home buyers. Their number has increased following the launching of programs that entice them to participate in the housing market and help contain repossessed houses for sale. Aside from the low prices of repossessed houses for sale, they can take advantage of lower mortgage rates and the federal tax credit which is set to expire at the end of November this year.
As starters in the housing market, first-time home buyers gravitate towards the more affordable portion of the housing market.
In the three Florida counties, inventories of pre-owned homes and repossessed houses for sale are still in the double-digit levels despite increased sales.
