In light of recent reports expressing anxieties about a lack of homes for sale in America, South Florida has held its position as one of the top 20 markets in which to purchase foreclosed homes this year.
The California-based firm RealtyTrac Inc compiled the list following an analysis of foreclosed inventory in over 200 areas with populations of over 500,000. Topping the list is Palm Bay, Melbourne, followed by Rochester and Albany, New York. Florida's presence in the list remains strong, however, with Lakeland in fifth position, Tampa-St Petersburg in sixth, Jacksonville in seventh and Orlando holding on to ninth position, which serves to support a growing number of reports citing South Florida as a top spot for property investment.
South Florida's ranking has come as a surprise to some, following anxieties from both buyers and realtors who believed that there was a lack of properties available to purchase in the area; available homes purportedly dropped by 50% last year. This is thought to have been the result of a competitive market pushing through faster sales, an increased amount of investment groups purchasing bulk properties, and the fact that some foreclosed homes have remained unlisted and therefore unavailable for the general public to buy.
Last year, however, Florida's foreclosure rate was the fifth highest in the nation. The rate was 36%, with one in 27 homes declaring some form of financial distress. This gives an indication that more bank-owned homes will eventually be released onto the buyers market this year, according to RealtyTrac spokesperson Daren Blomquist.
He added: "Lenders are going to have to dispose of that property and not hold onto it forever."
