There's an article by Bob Ivry floating around suggesting that the dam is about to break. Real estate vulture funds have started to buy distressed properties, which signals the bottom of the market here in South Florida.
The sale of 120 condominiums last month to a Philadelphia private equity firm and Related Group of Florida, a development company led by Jorge Perez, "broke the logjam" for investors targeting the oversupply of condos in downtown Miami, said Peter Zalewski, owner of the Condo Vultures LLC consulting firm in Bal Harbour, Florida.
(...) McCabe estimates that at least $30 billion has been earmarked by funds to buy distressed Florida real estate. Some investors have been waiting almost three years to buy, he said.
However, continued foreclosures and high inventory mean that we may be at the bottom for a while.
With 11,551 condo units in the 1,040-acre downtown Miami area expected to be completed this year, it would take five years to sell them off at the current sales pace, according to Brad Hunter, regional director at the MetroStudy real estate research firm in West Palm Beach.
In July, one in every 186 homeowners in Florida either had their home repossessed by a lender bank, received a notice of default or were issued a warning that their house was going on the auction block for failure to make monthly mortgage payments, according to RealtyTrac Inc., an Irvine, California-based seller of real estate data. That foreclosure rate, a 139 percent increase from July 2007, ranked the state third in the country behind Nevada and California.
You can read the whole article
here.
1 comments:
Looks like Florida was trying hard to catch up to California with foreclosure rates. I sure hope there is an upswing soon and the markets get back to normal again. 5 years to sell off all of those units is an awfully long time...
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