Foreclosure activity skyrocketed in Palm Beach County and the Treasure Coast in February, fanning fears that the housing market still faces strong headwinds.
About 4,490 homes in Palm Beach County received a foreclosure filing during the month, up 63 percent from January to February and 68 percent from a year ago, RealtyTrac, an information provider in Irvine, Calif., said today.
Statewide, foreclosures rose 15 percent from January, while foreclosures nationally dipped 2 percent, RealtyTrac said.
It's unclear whether the region's big jump in foreclosures happened because more borrowers stopped paying their mortgages, lenders got more aggressive about foreclosing, or because overwhelmed courts can handle only so many defaults — or a combination of all three.
Compared with the "non-judicial" foreclosure process in California, Arizona, Nevada and other states, the judicial process in states such as Florida and New Jersey creates "erratic patterns," said RealtyTrac spokesman Daren Blomquist.
"All the foreclosures in those states have to go through the court system, and the court system can only handle so much capacity," Blomquist said. "That leads to more of a roller coaster pattern."
There's little question that Florida faces a flood of foreclosures that threatens to hold down home values for years. Florida's rate of one foreclosure filing for every 163 households was the third-highest in the nation.
"The bottom line is that Florida's foreclosure activity has consistently continued at a very high level, with its foreclosure rate consistently ranking among the nation's five highest over the past two years," Blomquist said.
Thousands of homes coming onto the market create one more drag on property values. Palm Beach County home prices have plunged 43 percent from their 2005 peak.
So, if you are thinking about buying down here, this may be the perfect chance. And interest rates are still very, very low.
Mr. & Mrs. Seller, did you read this carefully? If you are thinking about selling or are trying to sell, you should get your home positioned correctly and quickly. I have sold 3 homes in the Jupiter community of Paseos in the last 12 months and across all local markets the homes I list are only on the market an average of 4 weeks. You can still sell...and quickly, if you want to.
Some communities in particular are selling very briskly! We still have great, "A" rated schools, miles of fabulous, free beaches, the warm & clear Atlantic ocean filled with fish and golf course communities like Admirals Cove, Frenchman's Creek, Jonathan's Landing and Frenchman's Reserve in every direction. Countless celebrities, who could live anywhere in the world, call the Jupiter/Tequesta, Jupiter Island and Palm Beach Gardens area home. You can too!
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Richard Sites, Jupiter & Tequesta Realtor
