Myths And Facts About Foreclosures In SE Florida Condo Market

New Myths And Facts About Foreclosures In SE Florida Condo Market

I wrote on this subject some time ago. Since it is the beginning of the new year, there are notable changes, worth revisiting.

If you are of those people, who at the end of the day want to say “I’m glad I did” instead of “I wish I had”, read on. I promise you, you will find it essential or at least extremely helpful:

What prompted me to write this report, was a brief email sent by a close friend of mine who forwarded to me the following published quote:

Some of the top U.S. lenders own as many as 700,000 foreclosed homes they have yet to offer for sale…”

To this I replied:

“Thanks for the information, however just the opening phrase should be your clue for accuracy: “some of the US Lenders…” very precise!


I choose to deal with FACTS ONLY- and these are the specific questions I would ask:

1. How many foreclosures in prime locations;

2. On water?

3. In SE Florida?

4. What is their ratio with the rest of this specific market- meaning the rest of the offerings for sale, in the same geographic area and under the same criteria?”

Well, as you know me, I spent hours researching. Sending you the FACTS:

  1. Condos for sale Broward: 13087 total units; REO’s: 735; Total units sold in 2009: 12448; Sold REO’s 5447
    1. 1.    Price range: under $500,000: 7696 total units; sold 12048

a)    REO-S ( i.e. Foreclosures): 706

b)    Sold REO’s in 2009: total 5424

  1. 2.    Price range: between $501,000- $999,000– 817 total units;

a)    Foreclosures: 29

b)    Sold REO’s in 2009: total 21;

3. Price range: above 1M- 371 total units

a)    REO-S ( i.e. Foreclosures): 0

b)    Sold REO’s in 2009: total 2

  1. Condos for sale Dade: 16305 total units, REO’s total 242; Sold REO’s in 2009: total 1819
    1. 1.    Price range: under $500,000: 9044 total units

a)    REO-S ( i.e. Foreclosures): 228 = 2.5%;

b)    Sold REO’s in 2009: total 1750= 96% of all foreclosures

2. Price range: between $501,000- $999,000– 1957 total units;

a)    Foreclosures: 12

b)    Sold REO’s in 2009: total 59;

3. Price range: above 1M- 1384 total units

a)    REO-S ( i.e. Foreclosures): 2

b)    Sold REO’s in 2009: total 19

It is evident that the luxury market is barely affected by the economic down turn; there are hardly ever any foreclosures. So, I am real curious where are all these buyers (who are convinced that there’s tons of foreclosures on the ocean and want to buy distressed newer construction on the ocean, which is actually the pretty stable luxury inventory), getting their information?

Our reports further show, that close to 95% of the foreclosures are selling at asking or above asking price.  They go in most cases to cash buyers, since there is a real crowd bidding for them. So, when you find just that sweet deal be wise instead of being a “wise guy”!

As it has always been, housing is our bedrock investment. It will continue to generate a nest egg for us long after we’ve turned off the television and forgotten what was said in the sensation-seeking story of the moment.

I hope, you will find these points helpful. For those of you who still do not own your home or, that great investment property you have been dreaming about, please call me now. Join those people, who at the end of the day can say “I’m glad I did” instead of “I wish I had”.

Kate Smith, Realtor®, ABR, CRS, E-Pro, TRC, LHM

786.412.8510 kate@hollywood-beach-real-estate.com; katsmith@ziprealty.com

PS: Stay tuned and look for my next report on single family homes- foreclosures.

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