While many of our South Florida readers may have noticed the uptick in residential development in the local area, some may not know that existing inventory is also a hot commodity - even distressed properties. A recent article detailed how the inventory of residential property which has been foreclosed on or for another reason had a depressed value or price has decreased markedly over the last few months. This could be good news for those in the market to sell, as fewer distressed properties on the market could translate into an increase in property value for everyone.
The South Florida area has become somewhat of a highlight on the national residential real estate scene, with the area seeing greater improvement and recovery in the housing market than many other areas. The improvements may be one of the reasons behind the decrease in foreclosure rates across the South Florida counties.
The foreclosure rates in Palm Beach County, Broward County and Miami-Dade County all saw year-over-year decreases. Palm Beach County decreased 1.78 percent, Broward County 2.27 percent and Miami-Dade County at 3.13 percent.
Another potential benefit which could be derived from this data, beyond the increase in property values for existing property, is that the lessened inventory could drive up demand for more residential development. Even as builders are beginning construction on condos in all three counties, more building could be on the way. It is an exciting time to be involved in the South Florida real estate market, as a developer, buyer or seller. However, real estate agreements can be complicated by the slightest of issues, which is why every party to a deal should carefully analyze the contract terms before making a full commitment.
Source: South Florida Business Journal, "More good news for real estate market in South Florida," Oscar Pedro Musibay, Jan. 29, 2013