Today we will run through some charts and data for the Miami-Dade, Broward and Palm Beach, Florida house and condo market. Our first chart today illustrates the residential inventory in the tri-county area. In March, there were 19,277 houses and 25,317 condo/townhouse properties listed for sale on the market. That is a total of 44,594 properties, up slightly from 44,372 in February. That is a far cry from the 72,241 properties that were on the market in January 2011, right after foreclosures were halted due to the robo-signing litigation against the major banks. The far left of this chart illustrates the gradual drop in listed inventory as banks stopped foreclosing in October 2010 and their REO inventory was either removed from the market or gradually sold off. Fast-forward to 2014 and you will see that inventory is finally being replenished as more homeowners have emerged from a negative equity position and are able to sell their homes and the banks are finally ready to dispose of their properties once they clear the courts.
Next, we will take a look at median sale prices for single-family homes in South Florida.
You will notice from the chart that traditional sale prices have remained stagnant at $291,000 in March, while short sale median prices rose to $200,000 and the median price of a foreclosure sale climbed slightly to $165,000.
Now for the condo/townhouse properties.
The median sale price of a condo/townhouse property rose to $165,000, short sale median prices remained at $105,000 and foreclosure sales climbed to $100,000 in March.
What’s new in the foreclosure market? The pace of new foreclosure filings is still greatly outnumbering distressed sales (short sale & REO). In March there were 1,889 distressed sales in South Florida and 6,737 new foreclosure filings. That is 3.5 times as many foreclosures than distressed sales. Take a look at this next chart and you will see that there hasn’t been a single month over the past 2 years that there have been more distressed sales than new foreclosure filings. The green line will need to stay above the purple line for several years to reduce the shadow inventory of properties in foreclosure scattered throughout South Florida.
Finally, if you take a look at the chart above, then look at our next chart, you will realize that there is no other way to reduce the massive shadow inventory of foreclosures than to have less new filings each month and a higher level of short sale and REO sales. Obviously the charts help illustrate the severity of the foreclosure problem in South Florida, where the average foreclosure takes over 1,200 days to navigate through the system. If you were wondering where the tens of thousands of South Florida foreclosures went after the banks stopped foreclosing in 2010……they are right where they left them!