Florida, the foreclosure state…

According to Duane LeGate, president of House Buyer Network. From CNN:

Duane LeGate, president of House Buyer Network, arranges quick sales for home owners in distress. He claims he can predict where markets will go bad by looking at the traffic on his Web site.

Short-sale interest can indicate slumping markets that are not detectable by traditional price indices. NAR’s median home price stats and same-home sale-prices from the Office of Housing Enterprise Oversight can lag or disguise actual market conditions.

Most deals close months after prices are agreed on. Evidence of changes in market conditions may not come out for months afterwards. Evidence of significant discounts in a majority of homes sold wouldn’t appear for a while.

When LeGate sees big jumps in client contacts from a single county, he concludes that the area has hit a rough patch that may not come out in price stats for months. It’s played out that way in the past when he saw other markets going into distress.

“We called Phoenix, two counties in California and West Palm Beach, Florida in June of 2005,” he said, at a time when those areas were still perceived to be white-hot.

What an interesting – and distant! – indicator for housing. CNN, whom I don’t rely upon too heavily (go read the BBC, if you need cable news – at least the BBC knows where Afghanistan is) nevertheless also have interesting lists of house price changes by area in the US, as well as the most affordable housing.

If you live in these areas and were wanting a bigger place, sit tight, I suppose. Auction-prices may be just around the corner…

Besides the Florida markets, other locales LeGate identified as likely trouble spots include Clark County, Nevada and Riverside County, California where the site’s traffic more than doubled between June, 2006 and May, 2007, and Price George County, Maryland, where it tripled.

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3 comments so far

  1. william steiner on

    Perhaps a crystal ball? Short sales are certainly at this point the way out for a lender when all other options have been exhausted. When the borrower just has no equity for what ever reason and the payments are impossible due to a DTI issue then having a performing note is better then a foreclosure on the books. Florida has been hit the hardest along with California not too far behind. Values have dropped so much in Florida its hard to think what might happen next.

    If foreclosure is in the crystal ball then I urge your readers to learn about their rights as a homeowner on my website http://www.freedomloan90.com it has a world of good information.

    william steiner
    senior loan officer
    1st metropolitan mortgage

  2. Home Buyers on

    William,

    We aren’t just looking at foreclosures. We look at our traffic which is based on people needing non traditional methods to sell their home because traditional methods haven’t worked. In fact less than 10% of our traffic is foreclosure based.

    Duane LeGate
    President
    House Buyer Network.com

  3. rhonda kiser on

    Can some one contact me regarding assistance with buying a property for cash in Cape Coral, FL. My mom is not a big time investor, but just sold her only rental home for cash and now wants to buy a duplex under $100,000 in Cape Coral. Does this service just help the person who wants to SELL or does it help a person who wants to BUY FAST. Since mom had to do a 1031 Exchange she need to identify a property within about 45 days. We were told that short sales are too unreliable “timewise” for 1031 exchanges so we want a duplex in preforeclosure or a regular sale. Some one please contact me with any infomation that we could use to get on the BUYING END OF THIS network instead of the selling fast end. thank you


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