Just so people don’t get too excited about the so called “recovery” in the South Florida residential real estate market, I will be providing monthly updates of new foreclosure filings in each of the South Florida Counties of Miami-Dade, Broward and Palm Beach. The elevated level of new filings will paint a picture that is not one of a recovery, but of an ongoing problem in our local real estate market. Take a look at the monthly foreclosure filings for 2012 in Broward County, Florida:
The data is divided into single-family and condominium foreclosures. These are just the new filings and in the single-family market, they range from a low of just over 600 new filings in February to more than 1,300 filed in March 2012. In the condo-market, the new filings range from a low of about 200 new filings in February to over 500 new foreclosure cases filed in both March and August 2012.
Where are the bulk of foreclosed properties located in Broward County? Since most of them haven’t made it to the market (yet) and are still considered shadow inventory, here is a chart to show which city has the bulk of the foreclosures:
This data was compiled on October 4, 2012 and the total number of properties in foreclosure was 47,029. The chart displays the total condo/townhouse properties in foreclosure (12,602 total) as well as the single family properties (34,427 total). Some of the cities with the largest amount of residential properties in foreclosure include Fort Lauderdale, Miramar, Pembroke Pines and Hollywood.
Eventually, these properties and their owners will reach one of the following outcomes:
- Receive a mortgage modification to make their home more affordable.
- Negotiate a short sale of the property.
- Vacate the property and allow the bank to sell it via REO sale.
That was just a quick glance of the current foreclosure market in Broward County. The declining available inventory levels has created a false sense of recovery and some people feel they have once again “missed the boat” in the home purchase market. Stay patient, as all of the current foreclosures and new filings will put downward pressure on housing prices in this market for the next few years.
Allied Realty Group is located in Fort Lauderdale, Florida. Our residential team serves as the exclusive broker for a variety of financial institutions in the management and sale of distressed single family and multi-family properties. Our team will inspect, repair, market and dispose of REO properties in a manner that mitigates bank losses.
Allied Realty Group’s REO assignment territory is Broward County, Florida and we complete broker price opinions (BPO’s) for banks on a daily basis. All of our residential brokerage clients appreciate our extensive market insight since we are actively visiting properties and preparing comprehensive valuations for asset managers.