For the first time in at least three years, the combined number of single-family houses, condos, and townhouses on the resale market in the tricounty South Florida region is poised to tumble below 60,000 residential properties, according to a new report from condo vultures.
Miami-Dade County, where Aventura, Miami Beach, and Sunny Isles Beach are located, leads the tricounty region in available resale product with nearly 21,150 properties available.
Palm Beach County, where Boca Raton, Delray Beach, and West Palm Beach are located, has the second highest number of residential resales available with nearly 21,000 properties.
Broward County, where Fort Lauderdale, Hollywood, and Pompano Beach are located, has the fewest number of residential properties available for resale with 18,500.
The 60,000-residence resale mark has been a long time coming.
When reporting began on resale inventory on Nov. 24, 2008 there were nearly 108,000 homes available as the U.S. financial system faced a meltdown, according to data from the Florida Association of Realtors.
Following the emergency creation of the Troubled Asset Relief Program, the Presidential election of Barack Obama, and a plummeting U.S. dollar, the available resale inventory in South Florida dipped below 100,000 properties on Feb. 2, 2009.
Nearly three months later on April 27, 2009, the inventory slipped below 90,000 properties, and proceeded to fall below 80,000 properties on July 6, 2009. Some four months later on Nov. 9, 2009, the resale inventory dropped below 70,000 properties, and looked poised to continue the decline in 2010, according to data.
At the time, the increasing number of transactions by all-cash buyers and individuals taking advantage of the federal government’s first-time home buyers incentive program prompted many owners who were not deeply distressed situation but wanted out to put their properties on the market, industry watchers said.
In the first 10 months of 2010, the number of available resales swung between 65,000 and nearly 69,000 properties at any given time, according to the data.
Available inventory began another steady decline again in late September 2010 when administrative irregularities tied to the foreclosure process made national headlines, prompting several lenders to withdraw bank-owned product from the resale market. The situation has been dubbed a “foreclosure freeze” by the media.
For example, there were 69,229 properties available for resale in South Florida on Sept. 27, 2010.
A week later as concerns related to the foreclosure freeze spread, South Florida available residential inventory dipped to 68,724 properties on Oct. 4, 2010.
The following week on Oct. 11, 2010 the available South Florida inventory dropped to 67,977 properties, according to the data.
The week-over-week declines have continued since September 2010 as banks withdraw residential product that could have potential “foreclosure freeze” issues and buyers purchase product at deep discounts of more than 40 percent.
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