KISSIMMEE is one city that was hit the hardest by foreclosures after Davenport because its proximity to Disney World, attractions and its great location was a big factor in home purchases. Most of the properties in this area are considered short term rental properties and tenant rate was high. When prices hit a high note in 2005 a lot of homeowners took out home equity lines and improved their properties. Also, Kissimmee incorporates part of the Poinciana area where new homes construction was booming between 2004-2009. A lot of high end communities were built and a lot of investors and snow birds purchased homes in Kissimmee. As we all know, Florida is considered the ultimate stop for retirees and vacation homes.
In the last year 4843 homes sold in the Kissimmee area and a whopping 57 percent of the distress sales there went in foreclosure. Only 18 percent qualified for short sales by showing evidence of hardship, such as a job loss, illness or death in the family. A meager 25 percent of the sales were regular sales but 75 percent were short sales and foreclosures.
From March of 2009 until March of 2010 there were 4843 sold properties out of which 75% were either short sales or bank owned. From September 2009 to March 2010 there were 2321 sold properties out of which 78% were either short sales or bank owned. From December 2009 to March 2010 there were 1038 sold properties out of which 79% were either shorts sales or bank owned.
In this area the rate of foreclosure stayed much higher than the rate of the short sales. A year ago there were 2754 foreclosures versus 905 short sales, 6 months ago 1246 foreclosure versus 580 short sales and 3 months 518 foreclosures versus 302 short sales. Also prices went down about 10% from a year ago.
This area had a great sale record but unfortunately a lot of them were foreclosure properties. By the numbers of foreclosure it looks like a lot of homeowners are still not aware that foreclosure is not their only option and that short sale is great option to be pursued before foreclosure. Also, a lot of investors took a big hit and lost homes to foreclosure due to the inability of keeping up with payments when values started to plunge and due to high unemployment rate it has affected people who rent their to be able to make their rent payments.
The employment market has still not seen the improvement that we all hoped for but buyers are taking advantage of the tax credits, low interest rate and low prices. Also, investors who were able to see the downturn of the real estate market and waited for better deals now are coming out and buying real bargains.
