Foreclosures on the Rise

Even though South Florida home sales rebounded in June, analysts and real estate agents still wonder whether the housing market is destined for another downturn.

Yesterday, Florida Realtors stated that Broward County had 844 sales of existing homes last month, up 15% from May. Compared with June 2009, Broward sales declined 2%.

In Palm Beach County, 1,087 homes traded hands, up 23% from May and 27% from a year-ago June. It was the county’s busiest month for home sales since March 2005, near the peak of the housing boom.

The June figures were bolstered by house hunters rushing to qualify for $8,000 and $6,500 federal tax credits. Originally, buyers who signed contracts by April 30 would be eligible for the rebates if they closed by June 30, but Congress later extended that deadline until the end of September.

Across the region, sales have been rising for the past two years, fueled by affordable prices and historically low mortgage rates. The surge of activity helped sustain prices at the start of 2010, prompting growing optimism after one of the worst tailspins in decades.

But expiration of the government tax credits could have a greater effect on housing demand than first thought, particularly as the nation’s economy appears more fragile in recent weeks. Without significant job growth, consumers will be reluctant to buy homes.

Boca Raton broker Frank Thomas said he and other agents don’t want to believe another housing slump – a “double dip” -- is possible.

“But we’re starting to get suspicious,” he said.

Broward’s median price in June was $209,600, down slightly from May but up 2% from $204,800 a year ago.

Palm Beach County’s median was $232,700, down from May and off 7% from $250,300 in June 2009.

Meanwhile, existing condominium sales rose in both counties, while the median prices declined.

Broward’s median condo price was $78,600, down 6 percent from a year ago. Palm Beach County’s median of $94,800 fell 19% from last June. The median means half sold for more, half for less.

Many of the home and condo sales in Broward and Palm Beach counties involve properties in some stage of foreclosure, a drag on the market.

Statewide, June home sales rose 8% from May and 15% from a year ago. While nationally, June sales fell 5% from May.

Declining inventories of unsold homes have helped the housing picture over the past year, but analysts say the stock of for-sale homes is starting to inch up again. In many cases, homeowners hoping for better market conditions can’t wait any longer and are forced to list their homes.