The foreclosure rate throughout the country has been artificially low during the past two years thanks to government programs such as The CARES Act, which allowed for mortgage forbearance. With these programs ending several months ago, we are now beginning to see foreclosures back on the rise. In fact, the month of February saw foreclosures increase by 11% as compared to January across the country. It is largely expected that we should see double-digit month-over-month growth in foreclosures over the next six months.
The Sunshine State
The real estate analyst company, ATTOM, recently reported that Florida had the second highest number of foreclosures in January. (Only the state of California had more foreclosures reported.) Throughout the state of Florida, there were 1,527 foreclosures starts reported. As for the top 3 Florida cities for rates of foreclosures, they were as follows:
- #1. Lakeland, FL: 1 in every 2,000 homes was foreclosed on
- #2. Jacksonville, FL: 1 in every 2,452 homes was foreclosed on
- #3. Orlando, FL: 1 in every 2,655 homes was foreclosed on
Across the country, 39 states and the District of Columbia all saw foreclosure frequency increase by 40%, according to ATTOM. It was up 176% from the year before. Although these figures may seem alarming, it is important to put these data in perspective. It is important to remember that the rate of foreclosures has been artificially low for the past two years due to government relief programs put into place due to the pandemic. When analyzing these data, it is evident that the current foreclosure rates are simply returning to the normal levels seen pre-pandemic. The bottom line: This is not a sign of economic turmoil or weakness in the housing market.
At Live South Florida Realty, Inc. we have assisted many clients with their real estate needs. Are you looking to buy or sell a property in South Florida? Now more than ever, it is critical to have a qualified real estate team and the proper search tools behind you. Live South Florida Realty, Inc., has been a leader in the South Florida market for many years. Let our team of professionals assist you with buying or selling your piece of paradise today! In addition, our recently launched “Florida Home Search” app is now available on the Apple App Store and Google Play Store. With real-time MLS feeds, this app lets you set your own alerts to notify you as soon as a property meeting your needs hits the market. Furthermore, it will also let you know of recent closed sales in your area so that you may be even more educated on the market. Be sure to download this app for your smartphone or tablet today!