Miami Foreclosure Rates Influence Housing Market

House3.jpgAs foreclosures clear through the housing market, experts expect home prices to go up very soon. While it may be too soon to say for sure, experts report key market events that suggest the market will turn around very soon, which is good news for homeowners in Miami. If you believe you are facing foreclosure, contact a Miami foreclosure lawyer who can help you.

An influx of foreclosures on the housing market continues to keep home prices at near record lows in most big cities across the nations. But experts are starting to see signs of stabilization in the market that should lead to higher home prices soon. Real estate experts and economists say that there has been a drop in the number of foreclosures in areas that were hit the hardest. Prices are still low in Miami, but investors are starting to scoop up homes at discount prices, which is a key step in the housing market stabilizing. It also lowers the number of homes on the market, which means prices could go up very soon. Discounted prices have lowered the amount of unsold homes in Miami by over ten percent. While that does not sound like much of a drop, it is a definitive step in the right direction for Miami housing prices. Experts believe if the supply continues to drop over the next few months, it will be a sure sign that the housing market is starting to come back up. Which is especially important in Florida, which rely heavily on tourism traffic to survive. The housing market has received most of the blame for the recession, which means if the housing market comes back up people will have more confidence in the economy as a whole. More confidence means open wallets, and hopefully more tourism for the state of Florida.

It is a little early to get our hopes up, though. In the first two months of 2011, housing prices in twenty major cities across the nation fell. Almost half of the major cities in the United States are reporting the lowest home prices since before the housing market crashed. As distressed sales, such as short sales and foreclosures, clear through the market prices will start to rise. Such a large number of properties for sale at discounted prices make selling a home at or near market value impossible. Once all the distressed sales are off the market, housing prices will automatically rise. Once prices go up a little, more homeowners realize they can get a decent price for their home and will either upgrade or move out of town completely. More sales mean more demand, which will buoy prices again.
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While the market may show signs of stabilizing, if you are having trouble making your mortgage payments that does not make you feel better. If you are having trouble making payments, contact a Miami foreclosure lawyer to decide what options you have. Foreclosure is not your only option if you are having difficulties. Before you decide to walk away from your family’s home, consult with a Miami foreclosure lawyer. Banks are increasing willing to work with homeowners to reach an agreement that does not lead to foreclosure and a Miami foreclosure lawyer can help you work with your mortgage company.

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Bargain prices help reduce glut of foreclosures, by The Associated Press, April 26th 2011