South Florida Foreclosures Fall By Half!

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According to a recent RealtyTrac report – The number of foreclosure filings in Miami fell by 40%, while Broward County foreclosure filings fell 60%! Statewide, the total amount of foreclosure filings fell 19%.

These figures are great news and may show us signs of the real estate market in the future however, with the unemployment rate rising not only in South Florida, but nationwide these numbers may last just a short while.

A lot has to do with new organizations and programs implemented by President Obama and government agencies such as Fannie Mae, who have set out new guidelines for loan re-modification programs that now allow more homeowners to qualify for assistance than before. The numbers can also be misleading for example; a drop in foreclosure filings can also mean an increase in short sales.

Government agencies are noticing that the new Home Affordable Program has not yet gotten into full effect. According to the Neighborhood Housing Services, many times they speak with lenders and inform them that a certain client may be able to re modify their loan. After which the lender asks questions not knowing anything about it.

It will take a few months for us to property digest these numbers and see if in fact they were not an anomaly. There are positive indications from the latest RealtyTrac findings which lead all of us to believe that there are signs of foreclosure decline ahead. How long ahead can only be seen after further research and market tests are conducted.

Another positive for the real estate market is the confidence index for homebuilders. It has risen dramatically by almost 20%. New home sales have surged and increased 11% in the past month. This has direct correlation to the new $8,000.00 tax credit the government is offering on home purchases.

We must be cautious of these signs. The $8,000.00 Credit expires in December. After which there is no word if it will still be available or not. How consumers act to the news in December will greatly effect next year’s projections and results. Housing sales may decline after an elimination of the Tax Credit. Extension of this tax credit has not yet been decided by Washington, D.C.

For the latest in South Florida Foreclosure news and reports check back with us weekly for our next blog installment.