South Florida Foreclosure Market Update | Henri Frank Group REMAX
Here we go again, more pet names for the distressed inventory here in South Florida and throughout the nation. Years back and until recently these properties are referred to as ‘shadow’ inventory. Many of our buyers in the Fort Lauderdale Real Estate Market and all throughout the South Florida region and the state, have been and are continuing to wait to purchase these townhomes, condominiums and single family homes and placed onto the market for sale.
Just yesterday alone, numerous buyers had contacted us inquiring about the Foreclosure market in Fort Lauderdale, Miami and Boca Raton in Palm Beach County. All were those who have been waiting for the REO “deal”, some since 2008. With the decline of foreclosures being listed sold in South Florida’s real estate market, the amount of properties whose ownership has given back to the banks after foreclosure (REOs) have widely increased. In September 2013, there were 3337 single homes sold in Broward County, Miami-Dade County and Palm Beach County, only 472 homes were sold as REOs and only 559 homes were sold as Short Sales. Even with the increased amount of REOs, roughly 53% of these properties aren’t even on the market for sale. In situations when the distressed properties haven’t been listed, the previous owner of the property most likely still inhabits the home.
Zombie Homes vs Vampire Homes
Based on information recently released in a study conducted by ReatyTrac, the well-respected research and data compilation company who major media outlets like CNN, NBC, ABC and others rely on to provide information to their audience, have coined these properties and named them “Vampire Homes”. Properties that are pending future foreclosure in which the owners have already moved out of the homes have been classified as “Zombie Homes”. The appearance of these homes in comparison to surrounding properties may vary depending on the individual situation. “Zombie Homes” are often easier to identify due to the unkempt landscaping and lack of repairs, while “Vampire Homes” can easily blend in the rest of the homes in the neighborhood.
Roughly 47% of nationally bank-owned properties (REOs) can be classified as “Vampire Homes”. It’s estimated that 20% of properties that are in some stage of foreclosure are vacant as the previous homeowners have already deserted the properties. Some readers may be wondering, “What does this have to do with me personally?”; “How will “Vampire Homes” and “Zombie Homes” affect my neighborhood?” According to the Vice President of RealtyTrac, “Vampire Homes” symbolize an obscure supply of homes that are being brought to the surface as average selling prices are increasing. Banks have noticed this rise and are attempting to earn back what they’ve lost from the previous loan. Blomquist also shared his opinion that “Zombie Homes” can become detrimental to the property value of a particular neighborhood due to neglect of maintenance and repairs.
The following percentages have been calculated based on information released from a recent RealtyTrac Report.
Percentage of Florida REOs that have been identified as “Vampire Homes”
- Miami-Fort Lauderdale-Pompano Beach – 64%
- Deltona-Daytona Beach-Ormond Beach – 33%
- Port St. Lucie – 34%
- Ocala – 36%
- Palm Bay-Melbourne-Titusville – 38%
- Jacksonville – 39%
- Tampa-St. Petersburg-Clearwater – 46%
- Pensacola-Ferry Pass-Brent – 47%
- Sarasota-Bradenton-Venice – 48%
- Tallahassee – 49%
- Orlando-Kissimmee – 50%
- Cape Coral-Fort Myers – 54%
- Gainesville – 55%
- Naples-Marco Island – 62%
- Lakeland – 63%
Percentage of Zombie homes in Florida from all homes some stage of the foreclosure process
- Miami-Fort Lauderdale-Pompano Beach – 16%
- Orlando-Kissimmee – 20%
- Naples-Marco Island – 21%
- Sarasota-Bradenton-Venice – 25%
- Cape Coral-Fort Myers – 26%
- Pensacola-Ferry Pass-Brent – 26%
- Tampa-St. Petersburg-Clearwater – 27%
- Lakeland – 27%
- Tallahassee – 28%
- Gainesville – 28%
- Palm Bay-Melbourne-Titusville – 28%
- Jacksonville – 30%
- Deltona-Daytona Beach-Ormond Beach – 30%
- Port St. Lucie – 31%
- Ocala – 38%
Visit the Website of the HENRI FRANK GROUP for more information on REAL ESTATE NEWS in South Florida and the Short Sale and Foreclosure properties FOR SALE: