South Florida Speculators Outbid Average Homebuyers
You'd think that now would be the time to pick up a bargain home in South Florida. After all, there are more than 96,000 foreclosures
to choose from, and that's just from the first six months of 2010, according to the Miami Herald
: "Distressed properties are still dominating the market, with more than half of all homes and condos
sold last month at some stage in the foreclosure process
Floridians with modest nest eggs who were priced out of home ownership during the boom should be able to get their hands on a sweet little slice of subdivision now that prices have plummeted. Right?
Not exactly. It turns out that investors are opening their purse strings, too, beating regular buyers to the punch.
"Cash-happy investors have been scooping up these bargain basement deals at a fast clip, often before middle-income buyers can get financing," according to the Herald
. The nest egg can't compare to the deep pockets of developers, speculators and investors who can self-finance, especially in the wary world of mortgage lending. And foreclosed homes
tend to sell for 25 less than their non-foreclosed counterparts, hard for the cash-in-hand to resist.