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Lenders are keeping an elevated pace of new foreclosure filings in South Florida

It sure looks like the banks don’t have any plans to slow foreclosure filings as we go into year-end.  Miami-Dade, Broward and Palm Beach County are seeing monthly numbers higher than expected.  There were 6,958 houses & condo/townhouses that entered the foreclosure process in November, down slightly from 7,103 in October.

South Florida - Monthly Foreclosure Filings

Now, let’s breakdown the numbers and look at Miami-Dade County first.  There were 1,894 new foreclosure filings in the single-family home segment in November and 1,326 new filings in the condo/townhouse segment throughout Miami-Dade for a whopping total of 3,220 new filings for the month.  So far in 2013 there have been 38,305 new residential foreclosure filings in the county with a monthly average of 3,482.  That is a 93% increase in the monthly average over the 2012 figure of 1,807 average monthly filings in 2012 when total residential foreclosure filings in Miami-Dade were 21,686.

Miami-Dade Monthly Foreclosure Filings

As for Broward County, there were 2,302 new residential foreclosure filings in November, down slightly from 2,484 in October.

Broward County - Monthly Foreclosure Filings

The single-family home segment in Broward County had 1,768 new foreclosure filings and 534 condo/townhouse properties entered the foreclosure process in November for a total of 2,302 new filings for the month.  So far in 2013, there have been 22,675 new residential foreclosure filings in Broward County, up from 15,983 for 2012.  The monthly average in 2013 is 2,061, which represents a 55% increase over the 2012 monthly average of 1,332.

Now for Palm Beach County, where there were 1,436 new residential foreclosure filings in November, up from 1,253 in October. Palm Beach is the one Soth Florida County that showed a month-over-month increase.

Palm Beach - Monthly Foreclosure Filings

Through November, there have been 14,320 new residential foreclosure filings in Pam Beach County, up from 10,964 in 2012. The monthly average of new filings was 914 and has increased 42%  to a monthly average of 1,302.  From the chart, you will notice that new filings appear to be on the upswing.  Also, don’t forget that the inventory of properties listed for sale is a mere fraction of the massive shadow inventory of foreclosures that hasn’t reached the market yet. The combination of rising interest rates, rising insurance rates and the massive shadow inventory of foreclosures will place downward pressure on South Florida residential real estate prices for the next few years.  Most of this news has been mysteriously omitted from the headlines, but will certainly be impacting South Florida residential real estate prices going forward.

South Florida Shadow Inventory