Although the foreclosure rate nationwide slipped 2 percent in February from the previous month, Florida continues to be dogged by an increasing number of foreclosures. In the top Florida architects area, the number of homes in foreclosure remains extremely high in comparison to other metro areas and within the United States overall. There are currently 40,598 foreclosures in the area.
Miami foreclosures continue to offer more low-priced properties, sharply increasing the number of single-family homes and condos priced below $250,000, based on recent reports from different real estate firms in Miami.
In Miami-Dade, a total of 13,185 condos and single-family homes listed below $250,000 are currently on the market and 72 percent of these or 9,437 units are townhouses and condos.
Miami real estate analysts said that the lower-priced homes are increasingly located in suburban communities on the western side of Interstate 95. Properties on the eastern side of the interstate are the ones rising in value because of their proximity to the coast.
Properties in foreclosure in Miami have significantly pushed down home prices over the past five years. In 2005, the sales price median reached $351,000. Today, more than 67 percent of the 41,000 previously owned townhomes and condos on the market were offered for sale below $250,000.
In an effort to attract buyers, home sellers in Miami are reducing prices by more than 10 percent, according to a monthly survey of home listings. Miami homes were the second highest number of price-reduced homes available for sale nationally
Actually, contrary to the US national trend, sellers in Florida seem to be cutting their asking prices aggressively to attract buyer interest. The first-time buyers are looking to take advantage of the $8,000 tax credit, and those looking for a second home, and real estate investors are finding there are deals to be had in South Florida.
Prospective home-buyers can take advantage of the tax credit for home purchases before it expires. This is a buyer’s market after all. Mortgage rates in Miami are currently averaging 4.97 percent for the 30-year fixed-rate mortgage.