Bank owned, also known as REO’s, Â and short sales exist along the coast in South Florida.Â For an oceanfront condoÂ buyer these are worth taking a look at but may or may not be the right choice.Â Â Following is statistical data on short sales and bank owned properties in South Florida, including; Miami Beach, Bal Harbour, Sunny Isles, Hallandale, Hollywood, Fort Lauderdale, Boca Raton and Palm Beach.
If you can’t read the chart very well, email me and I will send you back a clearer version.Â
Currently, there are 654 oceanfront condos in short sale.Â However, in the past 6 months there have only been 101 closed short sale transactions.Â Entering into a short sale transactionÂ can be a long process with unsuccesful results.Â Â The process seems to be improving lately, as all parties involved become more experienced with this type of transaction.Â Furthermore, with the new stimulus package, perhaps the banks will be more willing to move these properties along.Â
The majority of the short sales on the market today are priced under $300,000, 358 condos.Â However the actual closed sales in that price range is relatively sparce with a mere 33 closed transactions reported in the past 6 months.Â Â If weÂ compare Â closed sales in each price category compared to the number of active listings, the highestÂ ratio of closed sales would be in the over $1million price range.
Oceanfront bank owned properties are another story.Â There have not been that many.Â You can see that as they come on the market they areÂ selling.Â Â As in the short sale scenario, the inventory of the higherÂ priced condos that are bank owned have sold.Â WhenÂ bank owned properties come on the market they are oftenÂ priced well below market value.Â If they do not price them low enough, I have found that soon after they reduce the price significantly to a level where the offers start coming in.Â In that scenerio, there usually are multiple offers submitted. Â At that stage, the bank comes back to each buyer andÂ requests best and highest offer.
We will be carefully watchingÂ to see ifÂ the stimulus plan will change the dynamics of the short sale bank owned oceanfront condo market.
Data has been extracted from the South Florida MLS.Â All effort has been made to provide accuracy but is not guaranteed.