Miami Florida - The Demand For Foreclosures on the Rise

6
Dec

 

In the southern portion of the state of Florida, Auction.com-a leading auctioneer site specializing in real estate. The foreclosure properties in Miami Florida listed as sold in its final hours proved the site's credibility rating as 269 properties out of 369 properties found new owners in the foreclosure market in Miami Florida. In percentage terms, that's nearly 73% of foreclosure properties in Miami Florida.

Auction.com is not the only site specializing in foreclosures However, the site leads in sales volume with a whopping $157 million spent on a total of 2,450 properties. Roughly, that's around $64,082 per home.

Miami real estate has seen an increase in demand on foreclosed properties. In national foreclosure rates, Florida ranks at the top of the scale according to Realty Trac. One in every 461 properties filed foreclosure proceedings during May of 2011. Since there is a steady rate of foreclosure properties in Miami Florida, the trend of buying foreclosed properties is expected to remain high during the 3rd and 4th quarters.

Of the buyers purchasing foreclosure properties in Miami Florida, foreign buyers are leading the pack. Some properties in the foreclosure market in Miami Florida are, of course, being bought by single families. According to the National Association of Realtors, though, up to one third of the properties purchased were bought by the foreign investors and buyers. While there is diversity among the countries purchasing within the foreclosure market in Miami Florida, the Representatives from Global Real Estate Advisors are from Europe and Turkey, with other countries coming in within a small percentage of new home owners in the area.

Many of the Miami real estate purchased within the Miami foreclosure market will converted to rental properties with foreign landlords. South Florida real estate will see a rise not only in vacation homes, but in properties for profit, or Miami rentals. Since Miami rentals are purchased by investors looking to make a profit over the next few years, it is reasonable to assume Miami real estate will boom again in a few year. When Miami real estate booms, the foreign investors will begin to sell off the properties bought within the Miami foreclosure market. This should make the profit margin high as the investor will benefit from Miami rentals income and a hefty return during the selling of Miami foreclosure property at a later date.

Capitalizing on the current Miami rentals market is a necessity for sellers. South Florida real estate is booming with foreign investors, a rare opportunity for those in the market to sell properties. Being behind in payments and other financial obligations, relocating for employment purposes, or who wish to trade up with a new home within South Florida real estate are no longer obstacles. Due to an inventory decrease of 60% within the last six months, properties with water access, unique features or rental potential will be sought first as they are the coveted prime gems of South Florida real estate.

Despite Miami foreclosure markets appearing to be grim, experts agree that the foreclosure market in Miami Florida is a positive thing and not to be feared. This is because foreclosures drive new buyers which stabilize real estate prices. For investors and other buyers, this means a higher return when the cycle of real estate booms turns around again in the next few years.

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miami condos and homes
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