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February Slowdown in Palm Beach County Foreclosures Continues

By
Real Estate Broker/Owner with Paradise Sharks BK3087579


3rd Party Success Rate at Palm Beach County Foreclosure Auctions Down Again

The foreclosure process is a daily reminder of how the market run up of real estate prices earlier in the century proves what goes up must come down. And crashing down they came but the historical support level for pricing has been broken and with real estate now trading some 20% lower than normal price growth it remains potentially the best investment opportunity one will ever see. Most expectations are for prices to continue to stabilize throughout the year as a projected increase in foreclosure numbers over 2011 continues to keep the lid on any significant increases.

 

 

The chart above shows you the six-month trend of foreclosures in Palm Beach County which accurately reflects the trend over the past 6 month period. After hitting a multi-year weekly low two weeks ago, foreclosure numbers jumped for the second week in a row. A total of 184 properties were foreclosed upon which was well ahead of the 147 we had the week before. Even with that increase we remained below the 6 month average which currently stands at 205 and also well back of the 233 units foreclosed on in the same week of 2011.

 

We continue to see third party bidders doing quite well at these auctions but for the second straight week their overall success rate dipped below 15%. Prior to that we had gone over three months without a weekly showing below that threshold. With a third party success rate of only 11.96% we will continue to monitor the action to see if banks are tiring of investors snapping up some amazing bargains and might be tightening up their bidding procedures.

 

The weeks biggest foreclosure related news was the Florida Senate’s Judiciary Committee passing their version of the “Florida Fair Foreclosure Act” as lawyers and politicians continue to argue and point blame. The latest legislation is geared towards getting the foreclosure process to move more efficiently and getting abandoned homes on the market quicker. There are also some provisions that reduce the amount of time banks would have to recover any deficiency judgements associated with foreclosed and properties that were sold short with no waiver of deficiency. 

 

No doubt the saga continues and we still have a few storms ahead before any clear sailing is in our future.

Comments (2)

Florida Tolbert Team Keller Williams Advantage
Keller Williams Advantage III Realty in Lake Nona - Orlando, FL
Keller Williams Land Luxury Division Specialist

So it appears that even as foreclosures start getting released once again, they are not selling as well as expected. 

Is this about the size of your analysis?

Feb 26, 2012 08:50 AM
Tom Priester
Paradise Sharks - Jupiter, FL
Paradise Sharks

Kevin,

Banks continue to try different avenues to move foreclosures but those that they price well and are in decent condition remain in great demand with multiple offers and quick sales. Ran into an Abacoa unit last week that they put straight to auction and sold for more money than they would have through traditional avenues which was interesting. Those with condition issues and not well thought out marketing plans are costing them dearly but based on how they list some of these properties they get what they pay for and derserve.

The market appears strong from my viewpoint but the banks seem very disorganized and make operational decisions that are difficult to comprehend. New listings under contract within hours of showing up on the MLS are the ones that have me scratching my head most often; what on earth are they thinking? Some of the decisions made at the courthouse are also very interesting as it is easy to find case after case where they walked away from substantial moneys as they watch 3rd party bidders pick up some amazing deals.

Banks are not high on my list of well run organizations and now that the market is turning there are, in my opinion, better opportunities in many circumstances.

Feb 26, 2012 09:35 AM