Auction.com, one of the country’s leading real estate auctioneers, closed its initial summer Miami foreclosures series in the southern portion of the state. Approximately 73 percent of the bank owned properties were sold, 269 of the 369 properties listed. While there are multiple sources for available foreclosed properties, Auction.com leads in volume with $157 million being spent on 2,450 properties, through the platform this year alone!
Miami Foreclosure Numbers
The demand for foreclosure properties in Miami Florida is high. Roughly 1 in every 461 properties received a foreclosure filing in May 2011, ranking the area among the highest nationally in foreclosure rates, according to Realty Trac. With the steady volume of foreclosed properties landing in the marketplace, industry experts suggest similar buying activity throughout the remainder of the 3rd quarter and into the 4th quarter of this year.
Who is currently driving the foreclosure market in Miami Florida?
While individual and family buyers are a contributing factor to the rise in this market’s interest, the driving force behind the sales can be attributed to foreign buyers. According to the National Association of Realtors, foreign buyers have represented nearly one third of all purchases made in the South Florida real estate market year to date. Representatives from Global Real Estate Advisors suggest that the breakdown of these foreign buyers largely stems from Europe and portions of Turkey, although there are certainly buyers from other worldwide regions becoming property owners in the area.
While many of the buyers are utilizing these properties for their own personal vacation pleasure, a large proportion of the buyers plan to establish a presence in the Miami rentals market. Rental buyers aim to generate income over the next few years as the property market recovers, selling when they can generate a profit on their capital investment, adding to the financial benefits already received from rental income over the years.
Sellers Need to Capitalize on the Current Market Opportunity
The foreign presence in the Miami real estate market
presents an opportunity for those currently looking to sell their properties. Whether homeowners are behind their financial commitments, need to relocate for employment purposes, or who are looking to move-up in the South Florida property ladder, now is the time to sell! During the past 6 months the inventory has gone down 60% and properties with unique characteristics, water access and/or rental potential will be the most coveted properties being considered by this influx of buyers.
While many look at a rising foreclosure market as a negative sign for South Florida, experts feel quite differently. As new buyers enter the market, inventory levels are down, and prices are holding their own, now is a prime time for those interested in profiting from the circumstances.