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US Housing Market
West Palm Beach
In the last year we have all seen a taste of how incredible the Florida recovery will be, but for those who think that Florida housing recovery can be put into the past tense, you should check foreclosure figures.
Many of the areas that joined Florida as worst hit by foreclosures have kept foreclosures going down. Indeed in the likes of Phoenix and Las Vegas foreclosures are so low that the difference between full-price homes and comparable REOs has virtually disappeared. Not in Florida though, where foreclosure starts are once again topping the nation.
Florida posted the nation’s highest state-wide foreclosure rate for the fifth month in a row in January, and also had the highest number of properties with foreclosure filings for the month, marking the first month since January 2007 that California has not had the highest number of properties with foreclosure filings, according to the latest data from RealtyTrac.
The Ocala, Fla., metro area posted the nation’s highest foreclosure rate in January among metropolitan statistical areas with a population of 200,000 or more, with one in every 223 housing units receiving a foreclosure filing in January.
If that wasn't bad enough Florida is home to 5 (6 if you count Ocala) of the top 10 foreclosure metros in America. The line-up includes Miami at No. 2 (one in 228 housing units with a foreclosure filing); Orlando at No. 3 (one in 241 housing units); Jacksonville at No. 8 (one in 301 housing units); Tampa at No. 9 (one in 307 housing units); and Lakeland at No. 10 (one in 332 housing units).
Florida also topped RealtyTrac’s list of best markets to buy a foreclosure. Five other Florida cities ranked among the Top 20 best places to buy foreclosures: Lakeland, Tampa, Jacksonville, Orlando, and Miami. This is hardly surprising given the huge difference of 38 percent between foreclosure prices and open-market. In Orlando, the discount is less, 19 percent, but it’s 35 percent in Tampa and 31 percent in West Palm Beach, according to data from Home Value Forecast.
However, overall Florida home prices are holding their own. Florida was ranked eighth in the nation by CoreLogic for year-over-over year price appreciation in December (9.2%) and Realtor.com’s list price data shows many Florida markets reporting healthy year-over-year gains.
So, for investors with the stomach for a bumpy ride Florida foreclosures still look like an appealing investment given the huge discounts and strong rental market.
US Distressed Property Explained - read more
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*This page is provided for information purposes only and should not be construed as offering advice. IPIN is not licensed to give financial advice and all information provided by IPIN regarding real estate should never be treated as specific advice or regulations. This is standard practice with property investment companies as the purchase of property as an investment is not regulated by the UK or other Financial Services Authorities.