Yep, You heard that right! For the fifth consecutive month existing home sales across the country are up. St Cloud Florida homes sales are showing impressive gains. The median sales price of existing Homes in St Cloud Florida rose to $185,299, and supply of existing homes is at 6.8 months. Factors contributing the the increase of over 6% over last years figures, are historic low mortgage interest, combined with a pent up buyer demand.
Buyers are turning to “traditional” sales; those which are not shorts-sales or foreclosures. As rents continue to rise, buyers who are qualified for home loans are moving for faster acceptance on offers, and are avoiding the distressed properties which often entail longer waits and obstacles to closing in favor of dealing directly with a seller not an institution. As a result, sales prices have made gains.
This trend is reflected on a National level as well as short sale and foreclosed properties accounted for only a combined 24% of all sales in July 2012.
Typically distressed homes are sold at a 15-17% reduction off of fair market value. There was a time not too long ago, that the number of distress sales outnumbered traditional sales. As the available inventory was reduced, higher prices could and would be achieved. Buyers are frustrated at finding themselves in multiple offer bidding wars. Particularly those who are currently renting. Every month they spend “shopping” is costing them money.
It is tough to compete for low priced homes. Those priced on the bottom tier, often attract numerous offers and investors with cash. Making a financed offer less attractive to lenders looking to quickly off-load excess inventory. Price wars often ensue, and first time home buyers may have to make repeated attempts before realizing that working with a traditional seller may be the easier path to home ownership.