HomeVestors of America, the company known for its “We Buy Ugly Houses” signs, is having a tough time as the market slows down — particularly in Florida, which used to be one of its best markets.
Some of the factors making its business more challenging: The sharp run-up in home prices in recent years, the lack of equity that owners have in many of the properties now for sale, and slack demand among homebuyers.
“This is temporary,” says John Hayes, chief executive officer of Dallas-based HomeVestors. "We're just riding through this transition with Florida."
The median resale price of an Orlando-area home was appreciating as much as 36 percent annually by mid-2005, before settling back to single digits by mid-2006 and turning negative in April for the first time in five years.
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