MIAMI (CBS4) – While South Florida’s real estate market continued to struggle in 2010, area which boomed was “short sales”.
According to CondoVultures.com, residential short sales in Miami-Dade, Broward and Palm Beach counties jumped 49 percent compared to short sales in 2009.
“All indications are that short sales will increasingly be the primary focus of buyers searching for properties in the South Florida market,” said Hernan Osorio, the director of sales for CVR Realty in a written statement. “With the federal government’s loan modification program having a minimal effect and the economy failing to create enough jobs to jump-start the South Florida housing market, more homeowners are being faced with the prospect of losing their residences, either through foreclosure or short sales.”
Last year buyers purchased nearly 16,800 residential properties in the tri-county area at prices below, or short of, the outstanding loan amount owed by sellers.
“Luckily for sellers who do want out but are mindful of their credit, several lenders are beginning to view short sales as a viable alternative to the foreclosure process,” added Osorio.
Lenders sold 19,800 residences in South Florida in 2010, down six percent from 2009 when 21,050 bank-owned properties were transacted, according to the report based on Florida Association of Realtors data.
Buyers are still anxious to acquire bank-owned properties but lenders have grown more hesitant to unload repossessions given the economics involved.
In 2010, the average short sale price was $173,700 per residence compared to an average of $110,900 for a bank-owned property.