Miami Ranks Highest in U.S. Foreclosures
In a report signaling that banks are starting to put many foreclosures from their backlogs in the auction block, Miami’s foreclosure rate ranked the highest among several of the country’s metropolitan areas.
There is no question that there are several foreclosures in Miami. According to the numbers, one in every 236 residential properties in the city, as well as Pompano Beach and Fort Lauderdale, received a foreclosure notice in June. That is four times more than the average nationally. The recent jump in foreclosure activity was spurred by auctions.
The 283 percent surge in auctions was generally fuelled by lenders pulling out homes from their backlogs and putting them out in the market. The painfully long process of foreclosure has caused many properties to pile up, often becoming useless for the countrywide inventory crutch. Nevertheless, foreclosures are now slowly entering the market once again, therefore providing more options for buyers and, most importantly, offering a response to the increasing demand for properties.
The recent increase in demand for Miami homes caused a serious dent in the supply of available properties in the city. The brunt of the demand was motivated by the sudden influx of Latin American buyers. Due to their being mostly attracted to the luxury sector of the city’s housing market, developers had responded with several constructions. New condos will soon pop out of the city—and the entire region. And though many of them have already closed deals, the inventory decline is still becoming more and more evident especially on the lower price ranges.
It is hoped that the increased auctioned activity and the overall contribution of lenders to put foreclosures on the market will help revitalize the city’s slowly shrinking inventory.