Florida Foreclosures May Signify Recovery Reversal
Feb 15, 2013 February 15, 2013
The most recent data from real estate information company RealtyTrac show a Florida housing market at odds with most of the rest of the country. Not only does the recent foreclosure trend in the state contradict the prevailing housing recovery underway throughout the rest of the country, but has also become so severe as to place Florida as first in the nation for foreclosure activity. Even as foreclosures are on the decline nationally, Florida filings were up 3 percent over-the-month in November 2012 and a painfully high 20 percent over November 2011.
Statewide, foreclosure activity is present in one out of every 304 residences, and even worse in some of the major metro areas. The state rate is over two times the national average but metro areas such as Miami, Fort Lauderdale, and Pompano Beach measure rates of one in every 260 residences. Indeed, seven of the top ten foreclosure-ridden metro areas are located in Florida. It is important to note that the statistics refer to all foreclosure activity, including default notices, repos, and scheduled auctions.
Commenting on the foreclosure issue, Daren Blomquist, vice president of RealtyTrac said, “This is injecting a little reality into the Florida housing market. I don’t think this will crater housing prices, by any means. In markets that are very strong, it may not lower prices at all. It will definitely dampen things. It’ll be a drag on the market.”
The more expensive and time-consuming court proceedings necessary in Florida makes the distinction even more prominent; most states handle foreclosures administratively. A look at the November foreclosure numbers is sobering with a 7 percent rise in foreclosure starts over-the-year, a 51 percent surge in scheduled auctions, a 15 percent jump in bank repositions in a twelve-month period. Joining Florida in the top five foreclosures list are, in descending order, Nevada, Illinois, California, and South Carolina.