We always explain to people that one month of data does not make a trend. Therefore, we have added a helpful trend line (in black) to the chart of new foreclosure filings in Broward County, Florida. The trend line moves from the lower-left of the chart below, to the upper-right. This would be a positive, or “bullish” indicator if it was a stock chart, but it’s not.
Another good indicator of a trend is the monthly average of new filings over the past few years, which are as follows:
- In 2012, the monthly average of new foreclosure filings in Broward County, Florida was 1,332
- In 2013, the monthly average of new foreclosure filings in Broward County, Florida was 2,182 (64% increase over 2012)
- So far in 2014, the monthly average has climbed 14% over 2013 numbers and has reached 2,477
Next, take a look at the breakdown of single-family homes and the condo/townhouse properties receiving foreclosure notices. In June, there were 3,208 new filings in the single-family segment and 851 in the condo/townhouse market for a total of 4,059. That is nearly twice as many as the 2,096 filings in May.
Why is the pace of new filings so disturbing? Take a look at all of the properties scattered throughout Broward County that are still in foreclosure. We counted over 60,000! Feel free to click on the chart below to see how each city stacks-up, but this is a serious problem. Is there a reason that the South Florida “real estate experts” interviewed in the newspapers and on cable news channels fail to mention the massive shadow inventory of foreclosures that has been lingering for years? If even half of these properties were placed on the market for sale, supply and prices would gradually stabilize. The housing market will not recover until this issue is resolved and when you consider the magnitude of the foreclosure problem in South Florida, this will take years. Basically, if this is a “housing recovery”, it is being built on quicksand!