Going once, going twice, gone. This is the sensation that many people are experiencing as thousands of Florida foreclosures are flying off the metaphorical shelves. The second half of 2012 gave way to a huge boost in foreclosure sales, in addition to short sales and other property sales in Jacksonville that were completed before a foreclosure was necessary. The boost is coming from just a small handful of investment firms, and while it has many banks and homeowners happy that their property sale is complete, a good number of experts are scratching their heads with a worried brow over the potential of this buying trend hurting the Florida housing market down the road.
The main concern voiced over the buying of foreclosed on properties by big firm is the potential for inflation when all of the said homes hit the market at the same time. There is no guarantee that the homes will be placed for sale at the same time, but there is a risk. The firms who are buying the homes are doing so with interest in rental property management in Florida. By buying the homes at discounted rates it becomes possible to rent the houses for a reasonable monthly fee. In time as the housing market continues to recover the firms could potentially re-sell the homes for a profit. This is a valuable investment property opportunity, and it seems that currently more firms are taking their chances with it than are individuals.
The purchasing of a large number of homes is being referred to as bulk buying, and it is not clear how long the trend will continue to go on. The housing market in Florida is repairing itself day by day. Consumer confidence is increasing and more homeowners are becoming more comfortable with the idea of buying and selling their homes. What is even more, a large majority of Floridians feel that they could sell their house if they wanted to, and that they could obtain the mortgage they would need to should they need a home loan for a new property.
These trends suggest that it won’t be long before large investment firms may not find it worth their while to buy large numbers of properties, and ultimately that is a good place for the Florida housing market to be.
If you are interested in purchasing an investment property and would like to look at short sales and foreclosures in Jacksonville, contact us.