South Florida foreclosure sales fall 26 percent, but short sales pick up momentum

Miami /
Sep.September 04, 2012 11:15 AM

South Florida saw a 26 percent drop in foreclosure sales in the second quarter compared to the same period in 2011, according to a new report from foreclosure analysis firm RealtyTrac. The number of foreclosure sales rose 6 percent nationally in the same period.

There were a total of 10,474 foreclosure sales in South Florida in the tri-county area in the second quarter, down from 13,171 in the same timeframe in 2011.

“In South Florida, the trends were pretty similar to what we saw nationwide, which is basically a pretty sharp decrease in the number of sales that were happening,” said Daren Blomquist, a spokesperson for RealtyTrac. “But we saw an increase in the average sales price on each property, so that falls in line with what we’ve been hearing locally from a lot of agents and investors.”

Statewide, Florida saw a 23.8 percent drop in the number of foreclosure sales. Nationally, the drop was 12 percent.

What agents and investors have been reporting is a limited supply of foreclosures, he said, which is even causing bidding wars in certain cases. In Miami-Dade County, for example, the average sales price of a foreclosure transaction rose to $138,803 from $125,405, an 11 percent increase.

“Seasonally, if we look at the past few years, there’s usually a bump in more foreclosure sales in the second quarter,” he said. “But we saw the opposite this quarter, where in the second quarter foreclosure sales actually dropped on a year-over-year basis.”

But the drop in the number of foreclosure sales could stem from an increase in pre-foreclosure sales.

What’s happening, Blomquist said, is that banks are beginning the short-sale process far before properties are even entering the foreclosure process.

“One of the things that we’ve been seeing is that even for properties that are not even in foreclosure yet, there is actually a big percentage of non-foreclosure sales that are happening,” he said.

Indeed, the number of those non-foreclosure and pre-foreclosure sales actually increased 18 percent in the same period nationally. “That was pretty significant,” Blomquist said. “And it supported what we’ve been hearing, which is that banks are becoming more proactive with short sales, rather than waiting until homeowners start the foreclosure process.”

In some cases, he said, the lenders are beginning short-sale talks before a homeowner has even started missing payments.


Related Articles

arrow_forward_ios
Terreno Realty's W. Blake Baird with 8050 Northwest 90th Street (LinkedIn, Google Maps)
Lender sells foreclosed aviation maintenance site in Medley for $20M
Lender sells foreclosed aviation maintenance site in Medley for $20M
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
(Photo-illustration by Kevin Cifuentes)
South Florida’s industrial squeeze has brokers sounding alarms
South Florida’s industrial squeeze has brokers sounding alarms
(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
Jeff Gordon and the Boca Raton home (Getty, Realtor.com via Premier Estate Properties)
Jeff Gordon’s former Boca Raton mansion lists for $42M
Jeff Gordon’s former Boca Raton mansion lists for $42M
arrow_forward_ios

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

Loading...