In December of 2009, CoreLogic announced that properties with mortgages of more than a million dollars in the balance were defaulting at nearly twice the rate of other U.S. homes. Now, thanks to the oil headed straight for the shores of southwest Florida, some experts are speculating that there is about to be a short sale free-for-all on high-end, coastal real estate in that area.
Of course, this prediction does require people wanting to purchase these homes, even at depressed values. With BP predicting that it could have the leak plugged soon, but little credibility given to these optimistic predictions given that the most recent effort involves – no surprise here – the use of untested technology to siphon oil off the Gulf of Mexico’s waters, it seems fairly likely that many people who normally might jump at a hugely discounted Florida luxury property may sit tight to see what type of beachfront they are actually buying into.
Either way, it seems like a pretty safe bet that luxury foreclosures, luxury short sales or both are headed up in the near future in that area of the country.
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Well, it will certainly reverse the trend spoken of here: realestate.yahoo.com/promo/where-americas-money-is-moving
But being that retirees still look for the warmth of Florida and some high earners still want to live in a no income tax state, the spill may have a positive effect on inland Florida cities such as Orlando and Ocala. Tourism also should fair well in Orlando. Could we see a resurgence of time share sales? Doubtful. But why foreclosing lenders don’t hire management companies to rent their REO’s… now that’s a question I just can’t answer.