According to RealtyTrac, Broward County had 3,259 foreclosure-related home sales in the second quarter, down 31% from a year ago. In Palm Beach County, there were 2,966 foreclosure sales, off 15% from a year earlier. Daren Blomquist, a spokesman for the firm stated about South Florida foreclosures: “Anecdotally, we’ve been hearing that many people are very interested in foreclosure properties, and there just aren’t enough of them available for buyers to purchase. Demand is outstripping supply.”
According to real estate agents, when South Florida foreclosures are listed, they’re usually priced below market value, leading to multiple offers, real estate. Investors paying cash end up buying the homes at the expense of frustrated first-time buyers.
David Cohen, the broker at GSIG LLC in Boca Raton, has clients who have made over 10 offers, only to be beaten out with cash or a higher bid each time. He states: “My buyers are getting very frustrated. It can be challenging for buyers to get their offers accepted if they are not close or above asking price because of the shortage of inventory. There is definitely a shortage of South Florida foreclosures for sale right now. However, I predict a flood of inventory early Q1.”
Some analysts say an avalanche of South Florida foreclosures will flood the market soon and hurt prices. However, some agents insist there’s enough demand to keep values from falling.
South Florida foreclosures account for 20% of all sales in Broward, where the average price was $126,230, RealtyTrac said. In Palm Beach County, the distressed homes represented 22% of sales, and the average price was $121,766.