Miami's Foreclosure Market

Olivia Clifford |

As of June 2013, Miami had the highest foreclosure rate than any other metropolitan area in the United States.  Miami banks are preparing to sell a large portion of the backlogged distressed properties as the auctions and lenders have tripled in the last few months and the home prices are rising. On average there was 1 in out of every 236 housing units in the Miami, Pompano Beach and Fort Lauderdale areas that were foreclosed in the last year. That is an average, which according to Realty Trac Inc. is 4 times higher then the U.S. national average. This rise in selling of the foreclosed homes comes from lenders pushing past the judicial delays, as Florida courts are responsible for overseeing repossessions. 



Most homes in the Miami area that are being acquired by major private-equity firms such as Blackstone Group LP and Colony Capital LLC in bulk to transition them into rentals. The homes in general have had a return from the recession’s devaluation of 50-60 percent. Foreclosed homes are being sold at an average price of $108,200, which is up 20 percent from last year; but that’s still in comparison to the properties not under foreclosure that are being sold for an average price of $163,250. In a matter of the last 30 days the bank auctions have risen around 100 percent, as the lenders are making higher bulks of profit from the time releases of the distressed homes. 

 

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