Broward dominates pre-foreclosure sales activity
A short sale listed in Miramar
The 33025 zip code in Miramar saw the largest number of pre-foreclosure sales, or short sales, in South Florida in the first quarter of 2010, according to data compiled by RealtyTrac.
There were 139 pre-foreclosures sales in the area in the first three months of 2010, with an average sale price of $87,984, the data indicates.
Six of the 10 zip codes with the most short sales were in Broward County
“Miramar had explosive growth and a lot of subprime lending,” said Lloyd Feinberg of Coldwell Banker, who is based in nearby Hollywood and works extensively with REOs. “There was a lot of growth in western Broward County, a lot of new developments. It doesn’t surprise me that [short sales are] very prevalent there — obviously we’re seeing that short sale activity is leading to REO activity.”
The next-highest total was the 33064 zip code in Pompano Beach, which saw 103 short sales in the same period, for an average sale price of $64,350.
Third on the list was West Palm Beach’s 33411 zip code, which had 98 pre-foreclosure sales with an average price of $179,702.
The highest-ranked appearance of Miami on the list was the 33150 zip code, which is in El Portal, and was fifth on the list, with 96 short sales. The sales had an average sale price of just $104,014.
That zip code also had the highest percentage of sales that were short sales, with 96 percent.
There were a total of 5,832 short sales in the first quarter in South Florida, according to the data.
The high number of pre-foreclosure sales has been driven in part because short sales have become a more palatable alternative in hard-hit areas, according to RealtyTrac spokesperson Daren Blomquist. “[Short sales have grown] faster than they would in areas where the housing market still has somewhat solid footing left,” he said.
Blomquist pointed to South Florida’s unusually high rate of short sale activity, with each of the three counties seeing a higher percentage of short sale activity than the national average of 12 percent.
The 33149 zip code in Key Biscayne had South Florida’s highest average short sale price, with nine homes in the first quarter selling for an average of $997,800, or an average discount of around 43 percent.
With 70 properties averaging just $38,168 in sale price, the area west of the Ronald Reagan Turnpike and south of West Oakland Park Boulevard in Fort Lauderdale saw the lowest average sale price for short sales in South Florida.
The 33166 zip code in the Miami Springs area of Miami, saw the greatest average discount in the region at nearly 48 percent off on 21 properties sold in the first quarter of 2010.
In the same quarter, the 177 South Florida zip codes that saw one or more short sales had an average discount of 10.2 percent.
The hard-hit 33407 zip code in Pompano Beach and Lighthouse Point, which saw the greatest percentage decline in median home sale price in Broward County in the last five years, had just 30 short sales in the same period.