Fort Lauderdale Real Estates Taking Advantage of Dollar Decline

Since the mortgage crisis of 2006, Fort Lauderdale suffered a total decline in real estate profits due to increased foreclosure activity and low real estate acquisitions. The dollar decline in the U.S. is seen by local real estate experts as a possibility of boosting real estate acquisition in the city.

Ever since the dollar dropped, the prices of homes and real estates in Fort Lauderdale dropped as well. This will probably interest many foreign investors to purchase properties in the city, since its 50% cheaper compared to previous years.

Mortgage Crisis Affects The Housing Market

The rise in foreclosure activity between 2006 and 2007 was due to heavy investors that underwent mass real estate acquisition who failed to pay their mortgage.

Due to the economic crisis, many financial lenders were actually buffing up their requirements that made housing loan acquisition remotely impossible for the average consumer – this act alone reduce the number of home sales per month as people cannot afford their terms.

The year 2008 posts a marginal recovery, which is much better compared to previous years. Statistics shows that the median price of real estate in Fort Lauderdale for January 2008 declined by 14%; Florida Association of Realtors also reported the 33% decline of home sales as compared to last year’s statistics.

Facts and Figures of Fort Lauderdale Real Estate for 2008

There are a total of 5,854 homes for sale in the city with median prices ranging from $350,000 to $380,000. Florida Association of Realtor also reported that there are around 2,972 foreclosed units available selling at $200,000.

Note, however, that the media price of Home for Sale (MLS) decreased by 2.3% as compared to the figures last March of this year. The decrease in price might increase home sales acquisition by a few percent according to real estate experts.

According to analysts, the increasing number of foreclosure will continue to depress housing prices even further for the following months of 2008. Many home buyers are now waiting for the chance of the prices of real estates to decline even further to get the best deals in home acquisition.

The mortgage rates have increased depending on the type a consumer will chose to finance their venture. For 1 year ARM, the interest rate is current at 5.196%, as compared to the previous week’s figures of 5.008%.

The rate increase for higher mortgage types, like those for 15 and 30 years fixed, are from 0.082% and 0.077% respectively. The current rates are now at 5.701% for 15 years fixed, and 6.055% for 30 years fixed.

If the dollar devaluates even further, there is a possibility that home acquisition will increase by both local and foreign investors.

Vanessa Arellano Doctor
http://www.hometerra.com/home.php

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