The region’s foreclosures represent an 83% year-over-year increase for the tri-county area of Miami-Dade, Broward, and Palm Beach.
Also, according to the report based on Circuit Court records from each county. Miami-Dade led the surge, experiencing a 125% spike in REOs on a year-over-year basis. Palm Beach experienced a 112% jump while Broward’s foreclosures increased 42%.
At the current rate, Condo Vultures says nearly 50,000 homes will be repossessed in South Florida this year, which would significantly outpace the modern-day high of 30,400 repossessions that lenders took control of in 2009. Banks repossessed nearly 26,250 properties in 2008 after taking title to 10,100 properties in 2007.
Peter Zalewski, a principal with Condo Vultures, states:
“South Florida’s real estate market is at a crossroads. The number of bank repossessions in 2010 is higher than at any time in at least two decades. This additional bank-owned inventory will undoubtedly be coming onto the resale market in the near future as discounted REO product. The flip side is, the number of new foreclosure filings in South Florida is down 34% in the first half of the year, putting the region on pace for less than 70,000 actions in 2010 compared to 97,000 in 2009.”
According to Condo Vultures, despite the spike in repossessions, REOs still represent only about 6% of the 67,000 residences on the resale market in the tri-county South Florida region as of July 12.
Market conditions aside, the company says one key reason the number of bank repossessions has increased this year is the implementation of a new online auction technology being used by the South Florida circuit courts to clear the backlog.
“South Florida’s real estate market is at a crossroads. The number of bank repossessions in 2010 is higher than at any time in at least two decades. This additional bank-owned inventory will undoubtedly be coming onto the resale market in the near future as discounted REO product. The flip side is, the number of new foreclosure filings in South Florida is down 34% in the first half of the year, putting the region on pace for less than 70,000 actions in 2010 compared to 97,000 in 2009.”
According to Condo Vultures, despite the spike in repossessions, REOs still represent only about 6% of the 67,000 residences on the resale market in the tri-county South Florida region as of July 12.
Market conditions aside, the company says one key reason the number of bank repossessions has increased this year is the implementation of a new online auction technology being used by the South Florida circuit courts to clear the backlog.
Zalewski concludes:
“The unknown is how many of the more than 240,000 foreclosure filings initiated in South Florida since January 2007 are going to end up as bank repossessions. Right now, the ratio for repossessions-to-foreclosure-filings is about 38% and climbing.”
“The unknown is how many of the more than 240,000 foreclosure filings initiated in South Florida since January 2007 are going to end up as bank repossessions. Right now, the ratio for repossessions-to-foreclosure-filings is about 38% and climbing.”
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