Current Foreclosure Rates & Trends
A new analysis from ATTOM, the nation's leading real estate data analytics firm, shows that South Florida still struggles to address one of the highest rates in the nation regarding foreclosures. In August 2024, one out of every 2,429 housing units in South Florida saw a foreclosure filing, putting it 12th among the key metropolitan statistical areas in the United States. Over 1,000 homes throughout Miami-Dade, Broward, and Palm Beach started some form of the foreclosure process.
In August, 422 homes in Miami-Dade County were listed as being in the foreclosure process. This represents one out of every 2,604 units in the county, an increase of 23.28% from July and 8.4% year-over-year.
In total, 312 of 2,270 units were in foreclosure in Palm Beach County. There was a staggering 31.65% increase from last year and 16.42% increase from the previous month in the total number of foreclosure actions filed in Palm Beach County.
One in every 2,368 units in Broward County, or 363 homes, went into foreclosure. The foreclosure rate in Broward fell 6.2% from July and 3.46 percentage points from a year ago.
How South Florida Compares to the National Average
Although the national rates of foreclosure decreased by 5.3% in 2024 from the prior year, Florida had an uptick in foreclosure activity. The state reported a 15.71% increase in foreclosure filings from July of 2024, up 2.64% from the previous year. Florida ranked second in the nation regarding the total foreclosures, coming in second only to Nevada.
Reasons for Increasing Foreclosure Rates
Economic Reasons Affecting Homeowners
The rise in foreclosures has been influenced by financial pressures on home owners. With the soaring rate of inflation, job layoffs in certain sectors, and poor wage increases, many people can hardly manage to pay their mortgages.
Increases in Interest Rate and Mortgage Pressures
Higher mortgage rates have hit especially hard at homeowners who bought properties with adjustable-rate mortgages. When their rates reset, many found themselves unable to pay their higher monthly payments, and foreclosure filings rose.
Insurance Costs and Property Taxes
Another major factor is South Florida's insurance crisis. Quickly rising homeowners' insurance premiums and increased property taxes have put additional financial burdens on residents. The new state-mandated condo safety recertifications are also forcing associations to pay more, passing this off as increased fees onto condo owners.
Effects on Homeowners and the Real Estate Market
What It Means for Sellers
For some homeowners who are facing foreclosure, the only real option is to attempt to sell the property before it goes to auction. Still, property values have been fluctuating, making it hard to find a buyer quickly.
Buyers and Investor Opportunities
Affected properties do provide opportunities for investors and homebuyers. This is because foreclosures sell for less than market value, buyers can find potential deals if they put money into repairing and renovating the properties.
How Lenders Are Responding
Banks and lenders are trying to contain the foreclosure crisis by providing loan modifications and repayment plans for homeowners in distress. However, not all qualify, which then forces many into the foreclosure process.
How Homeowners Can Protect Themselves
Foreclosure Prevention Strategies
Homeowners who cannot pay their mortgage should look into refinancing their loans, negotiating with the lender, or seeking forbearance options as a way to avoid foreclosure.
Government Assistance and Relief Programs
These include federal and state programs, such as the Florida Hardest-Hit Fund and FHA-backed relief options that may provide temporary financial assistance in keeping people in their homes.
Work with a Real Estate Professional
Homeowners facing possible foreclosure may want to consult with a seasoned real estate agent who can help them understand how to sell their home before the foreclosure process starts.
The Future of South Florida's Housing Market
2024 and Beyond
The experts in real estate, however, say that though the short-term rates of foreclosure may be high, they will stabilize once the economy improves.
Will Foreclosure Rates Keep Going Up?
In addition, foreclosure rates may still increase with further increases in interest rates and escalating costs of ownership. However, a better job market and, perhaps, relevant government interventions might help the rates from going upwards.
Get Professional Assistance With South Florida Real Estate
Whether facing foreclosure or seeking an investor's dream opportunity, it is imperative that one consults experienced real estate professionals. For further insight into the process of how to handle South Florida real estate, contact The Mastropieri Group,Realtors® at (561) 544-7000.
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