Lenders took back an average of 4,000 properties per month during the first half of 2010 in the tri-county South Florida market, a pace that, if it continues, could see nearly 50,000 properties repossessed by year's end, according to a new report from consulting firm CondoVentures.
Miami-Dade registered a 125% increase in repos during the period, while Palm Beach saw the number of take-backs rise 112%, the Bal Harbor-based firm reported.
Repos in Broward were up "only" 42%, according to the report, which is based on court records. Foreclosures filings were down for the six-month period, but if the current rate of repossessions continues, it could set a modern-day record for the beleaguered South Florida market.
Lenders took control of 30,400 units in 2009, the previous record year. In 2008, they took back 26,250 units, and in 2007, they repoed just 10,100.
"South Florida's real estate market is at a crossroads," said consultant Peter Zalweski. "The number of bank repossessions in 2010 is higher than at any time in the last two decades."
If there is a bright side, the number of foreclosure filings is down 34% in the first half. If that pace holds, it will mean that filings in 2010 will drop from 97,000 last year to not quite 70,000 this year.
Meanwhile, for the fifth week in the last six, the number of resale houses on the market in the tri-county area has increased, moving the total overall inventory to more than 67,000 properties, according to data from the Florida Association of Realtors.
The resale inventory has been growing by nearly 300 units a week since May 31.
