Foreclosures On A Record-Breaking Spree In Lee County
Posted on August 5, 2008
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In July foreclosures went on a record-breaking spree in Lee County. To offset it there was hardly any activity in building construction of new single-family houses. In July there were 2,467 foreclosures marking an increase of 3% from June 2008.
Nevertheless the clouds are not all that menacing – a silver lining is peeping through. Many are taking advantage of huge discounts being offered for repo houses. Perhaps southwest Florida will soon get back on tracks according to housing experts.
According to Jeff Tumbarello of Southwest Florida Real Estate Investors Association, foreclosures are going about their own job but the “good news is that people are buying foreclosures” leading to a demand for these. Tumbarello clarified that for every two deeds taken back one deed is sold.
Nevertheless the numbers continue to be nasty even for hugely optimistic. In 2007 July there were 1,045 foreclosure postings. Last month showed the fourth running month of increased foreclosures causing a record on July numbers since 2,000. The glut of houses to be sold in the real estate market old and new, foreclosed or non-foreclosed is not good news for the construction world.
Reports came in from Bonita Springs and Lehigh Acres, Estero, South and North Fort Myers show decreases in number of new housing permits in July. The only bit of good news came from Cape Coral that reported the granting of 22 permits for new single-family houses in July. It is the third consecutive increase in the fiscal year that commenced from October.
New houses cannot compete with the low prices of foreclosed units, commented Jamie Pirrello of Vision Homes USA based in Cape. There was a demand for new houses but builders are having difficultly finding funds to kick off work. It is well nigh impossible to get construction loans. Equally difficult is it to get mortgages.
According to reports coming in from community development offices in Lee County 49 permits had been granted, marking a decrease of 13% from the 56 permits granted in June. In July 2007 119 permits had been sanctioned. In Cape Coral 22 permits in July marked an increase from 14 in June. It might lead to smiles but the frown comes from the fact that it is a 51% decrease from July 2007 when 45 permits had been issued. In July a mere 9 permits were granted in Bonita Springs. In June it had been 18. In July 2007 the number of permits was 11.
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