Hi Suz. Hmmmm, well, Florida is receiving $388M from Wells Fargo in a settlement towards mods, right? So that would be 388 homes at a million $ each, or 776 at $500K/ea, or 1552 at $250K/ea. A drop in the ocean of foreclosures. A non-event.
Appraisers are required to use foreclosures b/c they must take into account market sales, regardless of status. It's impossible to use bubble-priced homes as comps just because people purchased those homes at the top of the market. A home is worth the exact amount that someone is willing to pay for it. That's free market valuations.
How will that affect home prices? DOWN. Real estate is local, so some places are experiencing a 'bottom' or slight increases. Across the board, nationally, DOWN.
Scott Miller, Realty Associates, Boca Raton, FL