Foreclosures in Florida Fueling Buying Frenzy

Foreclosures in Florida have been the target of many local and out-of-state investors and have been fueling a buying frenzy in recent weeks because of their falling prices.

Based on a report from the Florida Association of Realtors, sales of detached single-family houses in August in Miami-Dade rose by 22 percent compared to sales in August last year as the median sales price fell to $194,800, a substantial drop of 29 percent.

Sales of condo units also increased by 17 percent as the median sales price for condos dropped to $144,700, another significant drop of 31 percent.

Sales increases and price declines also occurred in Broward. Sales of detached single-family homes increased by 35 percent as the median sales price fell to $217,000, a drop of 20 percent from August last year. Sales of condos soared by 61 percent as the median sales price for condos fell to $85,100, a decline of 36 percent.

Mike Pappas, CEO of real estate firm Keyes Company, said there are a lot of signs indicating that houses in the lower end of the market have reached their lowest price levels, so investors and buyers competing to grab the properties have been fueling the buying frenzy.

Pappas added that in 2008, auctions for foreclosures in Florida had difficulties attracting buyers. Now, he said, every distressed property is attracting bids from 10 to 15 buyers. He added that the buying frenzy is one indication that the market is bottoming out.

Based on the August foreclosure report issued by a real estate research firm, nearly 8,900 houses in Miami-Dade were distressed or already foreclosed. In Broward, almost 10,200 housing units were distressed or already foreclosed.

A Cooper City real estate agent said that all the homes she has sold so far were either foreclosed or distressed. She added that she could have sold more if there were more foreclosure properties available for sale in the low- to moderate-price ranges.

She related that she recently submitted a bid for a foreclosed house in Hollywood, but she failed to get the house because there were 24 other bidders. The bank asked only $77,000 for the 3-bedroom home, but it was eventually sold for over $100,000 because of the buying competition.

The buying frenzy for foreclosures in Florida has been successfully cutting down the number of unsold houses in Florida. The number of unsold houses dropped by 46 percent in Broward and dropped by 42 percent in Miami.

Related Posts:

• Foreclosed New Homes Are Being Sold Aggressively in Marin
• Realtors Say Prices Still Influenced by Florida Foreclosures
• Why a Repo Property for Sale in Florida Is Good Investment
• Housing Market Absorbing Foreclosures in Florida Well
• Repo Properties for Sale Dominated Manatee Housing Market