Distressed sales fall in South Florida, but short sales begin to pick up steam

Miami /
May.May 31, 2012 04:30 PM

South Florida’s recent surge in foreclosure-processing activity hasn’t yet had an impact on the number of distressed sales, according to data released today by RealtyTrac. Foreclosure sales in South Florida actually fell 8 percent to 11,038 in the first three months of this year, down from 11,995 in the same period in 2011, according to RealtyTrac. But activity increased by 25 percent compared to the last quarter of 2011, a sign that distressed sales activity could be picking up steam.

While the number of overall sales dropped, banks are increasingly turning their attention to short sales, leading to a 39-percent increase in the number of pre-foreclosure sales from the fourth quarter of 2011 to the first quarter of 2012 in South Florida, according to RealtyTrac spokesperson Daren Blomquist.

“I think that lenders are viewing short sales more favorably than they have in the past, because it’s becoming increasingly difficult for them to foreclose,” Blomquist told The Real Deal. “The process has become much more scrutinized and lengthy and even costly for the lender to foreclose, so a short sale is the only way for them to dispose of these distressed assets on their books.”

In the first quarter, sales of bank-owned properties in South Florida, or REOs, have dropped 41 percent.

“The pre-foreclosure sales outnumbered the REO sales, which in the past is not something that we’ve seen,” Blomquist said. “Usually the REO sales outnumber the pre-foreclosure sales.”

Banks have also improved their short-sale operations, he said, with increased staffing and attention to the process.

For short sales, Miami-Dade County led the way in the first quarter with 4,585 short sales, a 5 percent drop from the first quarter of 2011. Broward County’s foreclosure sales activity fell by just under 20 percent in the same period, while Palm Beach County saw a 3.2-percent increase.

The average sales price of a pre-foreclosure transaction in Miami was $130,288, easily the highest in the region. Miami’s foreclosures sales transacted for an average of 45 percent off the market value of the property.

Nationally, short sales hit a three-year high in the first-quarter, with a 25 percent increase compared to the first quarter of 2011.


Related Articles

arrow_forward_ios
Renderings of new Miami Collective site with Gamma Real Estate’s Jonathan Kalikow (The Collective, Gamma Real Estate)
Lender takes control of The Collective’s Wynwood dev site through foreclosure auction
Lender takes control of The Collective’s Wynwood dev site through foreclosure auction
The Collective's Reza Merchant and renderings of new Miami location (The Collective, LinkedIn)
Collective undone: Lender targets planned co-living site in Wynwood
Collective undone: Lender targets planned co-living site in Wynwood
Vivian Dimond with 230 Lincoln Road (iStock)
Vivian Dimond, partners acquire Ross-anchored building on Lincoln Road from lender
Vivian Dimond, partners acquire Ross-anchored building on Lincoln Road from lender
Raz Ofer with 1568 Drexel Avenue (Dade County, Google Maps)
Miami Beach apartments mired in ownership dispute slapped with $1M foreclosure
Miami Beach apartments mired in ownership dispute slapped with $1M foreclosure
(Apartments.com, iStock/Illustration by Steven Dilakian for The Real Deal)
Little Havana apartment building targeted in $15M mortgage foreclosure suit
Little Havana apartment building targeted in $15M mortgage foreclosure suit
Daisy Chaplin and Charles Prince with the property at 6000 North Bay Road (Getty, Google Maps)
Late Broadway legend Harold Prince’s children settle dispute over family’s North Bay Road mansion
Late Broadway legend Harold Prince’s children settle dispute over family’s North Bay Road mansion
Foreclosure lawsuit targets DoubleTree hotel near Miami International Airport
Foreclosure lawsuit targets DoubleTree hotel near Miami International Airport
Foreclosure lawsuit targets DoubleTree hotel near Miami International Airport
The Variety Hotel (Getty)
Lender acquires Variety Hotel in Miami Beach following foreclosure suit
Lender acquires Variety Hotel in Miami Beach following foreclosure suit
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...