There is plenty of new data to drop into our charts and the first area we will look at is the median-sale prices of single-family homes in the Greater Fort Lauderdale / Broward County market.
Here is a quick breakdown of the May 2014 single-family home sales in Broward County, Florida:
- The median sale price of a traditional sale was $313,500, up from $305,000 in April.
- The median sale price of a foreclosure/REO sale was $158,100, down from $160,000 in April.
- The median sale price of a short-sale transaction was $180,000, down from $185,000 in April.
Next, we will take a look at the number of transactions in each category.
- There were 1,027 traditional sales in May, which was higher than the 980 counted in April
- There were 157 foreclosure/REO sales in may, down from 171 in April
- 157 short-sale transaction closed in May and that was lower than the 183 in April
As for the total number of distressed sales, they made up 23% of all closings in May. There were 314 total when you combine all short sales and foreclosures. That number is down from 354 in April when distressed property sales made up 26% of all closings.
How about the inventory of houses listed for sale on the market? In May, the inventory reached 5,893, which was up slightly from 5,773 the previous month. Take a look at the chart below and you will notice the steady inventory rise after hitting a low of 4,089 houses for sale last April. That is a 44% increase in the available inventory on the market. With prices gaining some traction lately, more sellers have been willing to sell their properties and a large number of sellers have emerged from their negative equity position that has trapped them in their property for several years.
How about the pace of new foreclosure filings as compared to distressed sales? By looking at the next chart you will see that new foreclosure filings in the single-family home segment of the market continue to outnumber the distressed sales. In may, there were 1,650 new foreclosure actions filed and only 314 distressed sales. That is over 5 times as many foreclosure filings as distressed sales and this lopsided ratio doesn’t bode well for a true housing recovery. Banks have been slow to process their foreclosures and short sales will continue to drop since the mortgage debt forgiveness act expired in December 2013. Since distressed borrowers will be taxed on the forgiven debt in a short sale, most of those borrowers will just let their properties remain in foreclosure instead of completing a short sale.
What’s next? How about a look at the shadow inventory of houses in foreclosure throughout Broward County. This chart shows over 45,000 houses stuck in the foreclosure process and does not include the 15,000 +/- condo properties in foreclosure. Feel free to click on the chart to enlarge and see how your city compares to the others.
As for the pace of new foreclosure filings, it doesn’t appear to be slowing anytime soon. As for annual numbers, they are hardly indicative a housing recovery:
- In 2012, the monthly average of single-family foreclosure filings was 953
- In 2013, the monthly average of single-family foreclosure filings was 1,624
- So far in 2014, the monthly average has already surpassed 2013 and is 1,647 through the month of May