Looking for your next home? St Cloud Florida Homes for sale will cost you more than they did just six months ago. On average about 12% more. The reduction in the amount of available homes, has created an increase in sales price. While sales have been brisk nationwide, and recently the TV news has announced that home the housing market appears to be improving, those buyers who were “on the fence” will no doubt be paying more than those who acted while the market reports were bleek.
Some Realtors® are reporting that Appraisals are still a problem as they are based on recent sales, they generally lag slightly behind market valuations Realtors® use when pricing homes. Additionally some sellers have been holding out waiting for the market to improve and have priced their homes too high to clear the appraisal obstacle for financed purchases.
Pending sales are those which have yet to be completed-sort of like being in the bullpen warming up before being put in the game. These properties which are under contract are at the leading edge of the market. They are waiting to close. They rely on sales which closed before them and will help determine sale that follow them once they have reached the closing table. On average sales fail three times before they are successful.
The primary reason for this is failing to achieve the appraised value. One third are cancelled because buyers change their minds, or grow weiry of waiting for banks to counter their offers. When they do they are usually not within a range the buyer is willing to pay.
We have seen a sharp rise in foreclosed (bank owned) properties in need of work counter offering at prices that are unacceptable to buyers who must make the repairs. The discounts once offered on “Distress Sales” are indeed diminishing as Lender scrutinize achieved sales and are pricing their properties comparable to those prices. But are they really comparble? Usually not.
Investors have been buying for over two years when prices hit rock bottom in St Cloud back in late 2010 and throughout 2011. They could pick up older homes sharply discounted, make the repairs and updates and turn those sales around at a respectable profit.
Banks have responded, by raising the bar on what they will accept for their distressed properties by offering them at much higher prices than they did a year ago. Despite the fact they may need thousands of dollars of work. Thereby decreasing the investors incentives for quick flips and higher profit margins.
For the average buyer or first time home buyer what is available on the lowest rung are generally homes which need a large amount of renovation. If you want a “turn key” move in ready home you will be looking at paying $20-40,000 more that you would have just last year. The trend is expected to continued as lender are tightly controlling both the borrowing end (financing) and the selling end at releasing the foreclosed homes in their inventories.