Ft Lauderdale Real Estate News 9/24/20
Real Estate Investors Search for Bargains in South Florida Housing Market
Zombie Kong Arises, Foreclosures Return!
Picture if you will a Zombie-fied King Kong arising from the dust of 34th Street.
Due to the inevitable economic impact of the Covid-19 Pandemic, another Foreclosure Market is sweeping in like the swelling wave off the coast which turns out to be Godzilla emerging from the sea.
On June 30th, Florida Governor Ron DeSantis extended his moratorium on Foreclosures and Evictions through October 1st. This is good news for people hit hardest by the pandemic's economic ramifications. But anybody with a brain knows this only forestalls the inevitable. The full impact upon the economy has not hit. A hefty portion of our population, already living paycheck to paycheck, cannot work, cannot buy anything. Companies (some heavily leveraged) dependent upon this revenue will not be profitable. Many will close, or lay off employees. This threatens to deteriorate into a vicious cycle which will take time to reverse.
What will happen as that October 1st deadline approaches? Will the Governor extend it? Sooner or later that moratorium must expire. Think about how that will impact our real estate market.
Meantime, since Fort Lauderdale and its surrounding suburbs is such a highly-sought and highly shopped location, I am already receiving inquiries from more forward looking Real Estate Investors who sense this could become a great buying opportunity. I caution them, in my opinion, we might see a slight softening in the upper end of the market, but I doubt this will end up being anything like the Great Crash of 2005. (For most of the country, the Great Crash of 2008.) Listing Prices may dip, but not significantly. Certainly not the 50-60% we saw circa 2009. Still, Sellers might be a bit more negotiable. There is no more undeveloped dry land in Broward County, and people continue moving in. This trend will undoubtedly continue once we get past the pandemic.
Historically, the sale price of an single family home or condo in Fort Lauderdale averages around 95% of the Listing Price. We could see that number dip. Still, I know from experience Sellers in South Florida are usually a lot less negotiable than most Buyers expect. Especially out-of-town Buyers, who have been lead to believe Real Estate is a whole lot cheaper in Florida. In large part it may be. But not in the premier neighborhoods of Fort Lauderdale, a tropical paradise interwoven with great restaurants and luxury services, the most desirable Real Estate in one of the most desirable locations in the world.
The most severe impact will be on the lower end of the market, where people are being forced to dig themselves into holes from which they may never be able to emerge.
In my capacity I often work with builders and construction companies looking for properties they can fix up and re-sell. Currently we are seeing a lot of foreclosures at the lower end of the market. We are even seeing some short sales, which we have not seen in years.
If you are a Real Estate Investor you should be watching the housing market in South Florida. We can help. Contact me and we can set-up a Saved Search with Automatic Email Alerts which will notify you whenever a property within your stated perimeters comes on the market (or lowers its price).
If you prefer, you don't even have to contact me at all. You can set-up a Free Account through my website which will do the same.
You will also find our "Foreclosue" Page perhaps the best resource on the internet to search foreclosures, short sales and distressed property in South Florida. Click on the link below (or click on the button in our main navigation panel to the left) and go to our Foreclosure Page. One of the first modules toward the top is our "Hot Buttons" which you can click on to see the latest listings on the market. These Listings drop off after a week, so if you click on these buttons every couple days you can keep current with the newest distressed properties to go on sale.
The Best Resource for
Forecloures, Bank-Owned REOs & Short Sales
Any Distressed Property Deals
Check Out Our