Real estate sales are going up

More homes have been sold in Highlands County during the past six months, but they're going for less, according to statistics from a local real estate agent.

From January to June, 712 houses and other living units were sold in Highlands County, compared to 584 during the same period in 2009. That's a 22 percent increase.

However, said Steve Fruit, an agent with RE/MAX Realty Plus II in Lake Placid, the median price of those homes fell 10.5 percent, from $95,000 to $85,000.

That mirrors a report by the Highlands County Property Appraiser, who reported that the values of commercial, residential, agricultural and building lot values are down 14.8 percent.

In Miami-Dade, values fell 13.4 percent from the previous year; Manatee properties are down 13 percent, Lee County is off 15 percent, and Pinellas is down 9.7 percent.

Foreclosures

The other news on the home front is that the foreclosure rate has dropped, said Clerk of Courts Bob Germaine.

Last year, his office recorded 1,508 forecloses. Though June 2010, there have been 702 foreclosures. That pace is 104 fewer than the previous year.

However, that number comes with a caveat.

Judge David Langford is coming in on Mondays to deal with the backlog, Germaine said. "It looks like have 1,800 pending foreclosures just sitting there," Germaine said.

Large inventory

Fruit calls unrealized foreclosures a shadow inventory.

Highlands County has an 18-month to two-year inventory, he said. However, an extra 1,800 homes adds an additional 15 months.

As the supply is greater, the price drops.

"They're hammering prices down, there's no question about that," Fruit said. "Banks want them sold in 90 days. They'll ask for a quick sale value - how much will a house sell for in 90 Days, and then they want to know what they'll sell for in 30 or 45 days."

A motivated seller is likely to drop the price to sell the unit, Fruit said.

Because Highlands County buyers tend to prefer houses under $100,000, there is only eight months of inventory at that price, Fruit estimated.

"We get more buyers in that price range," Fruit said. "A lot of them are first-time buyers, or they want seasonal homes, or weekend homes."

Neither Fruit nor Germaine could explain why the foreclosure market is slowing.

"I guess they (bankers) have got enough on their books, and they're not in a hurry," Germaine said.