After a survey all across the US, a report has been released last week by Foreclosure-Response.org which reveals that among all the worst affected areas of foreclosure in US, Palm Coast occupies third position for the highest rate of foreclosure postings. Economic gravity is one of the reasons behind this rank because when the real estate market of this country was at its boom, this region was at the top position in growth.

In the words of a Real Estate agent associated with Palm Coast based Exclusive Properties, Greg Kong, “It’s one of those things, what goes up must come down, and we are coming down from many years of activity and being number one in the country as far as new home sales.”

According to this latest report, the Foreclosure Rate in Palm Coast is 16.6% whereas Florida areas are spread all over this list with high foreclosure rates. Palm Coast is immediately followed by Tampa-St. Petersburg-Clearwater which has a foreclosure rate of 15.9%.

According to him, this situation will sustain for some months and there is no sign of any improvement very soon. He added, “I think that this year that trend is going to continue, that homes are going to continue to be foreclosed at an alarming rate.” As lenders are proceeding with foreclosures very fast to clear their backlog, this is creating a wide scope for willing buyers who are looking for good deals.

He stated, “There’s more and more sales every day. It’s an incredible opportunity for investors and those homebuyers that are looking to take advantage of the Market prices right now.” Moreover, there is high chance for a rise in the property values and so he added, “Sure, that will happen. But that will happen once we get through this glut of foreclosures and the short sales that are on the market currently.”

A balanced economy market is emerging slowly as there is both demand and supply in the Real Estate Market. Lenders have given a boost to their speed of foreclosure processing, and this is creating supply as well as demand in the market.

So Kong stated, “Once we get through the exorbitant supply you will start having buyers willing to pay more because there is not much inventory on the market. And hopefully you’ll have banks starting to lend. The banks are lending but obviously banks have started to tighten their lending criteria.”

But according to Barbara Revels, an executive at Flagler County Commission and also the proprietor of Flagler Beach based Coquina Real Estate and Construction – these foreclosure rates may be misleading also because many housing investors are buying foreclosures to use them as rentals till the housing market improves.

Photo by Renjith Krishnan.

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