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Miami Pre Foreclosures Continue to Benefit Home Buyers

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By : John Cutts    99 or more times read
Miami pre foreclosures continue to benefit home buyers as any addition to the existing foreclosure inventory means additional property for possible purchase and further decrease in home prices.

The sales price median for single family homes in Miami fell by 2 percent in February to $191,100, down from the $195,000 median in February 2009. As more buyers got attracted by the lower prices, home sales surged by 9 percent to 445 houses, up from the 409 units sold in February 2009.

In the Miami metropolitan area, total foreclosure postings surged by 44 percent in February to almost 6,700 units. This figure included Miami foreclosures and those properties that are posted for public homes auctions in Miami.

As distressed condos continue to enter the Miami market, the median price further decreased to $126,100, a sharp 14 percent drop from the February 2009 median of $146,100.

Miami is among large cities overloaded with condos that cannot be absorbed by the market. The Miami skyline is filled with vacant units that arose from the desire of developers to profit from the fierce demand for condos during the boom. A lot of apartment buildings and other mixed-use properties were converted into condos even when signs of condo overbuilding were already apparent.

As Miami pre foreclosures pulled down prices further in the area, the sales prices for existing condos and single-family homes in nearby areas were also dragged down.

The median price for Fort Lauderdale single-family homes dropped by 13 percent in February to $186,700, down from the February 2009 price median of $214,400. Condo prices in Fort Lauderdale also fell, posting a 17-percent drop from $85,800 to $71,500.

In West Palm Beach, the sales price median for single-family houses fell by 4 percent from the February 2009 median of $219,100 to $228,100 in February this year. The median price for condos dropped by 5 percent from $101,900 in February last year to $96,700 in February this year.

With the price of condos approaching bargain-level prices, sales of condo units soared, posting more sales than sales of single-family homes.

Statewide, sales of previously owned condos also soared, posting a whopping 59-percent increase to a total of 5,085 units in February, far above the 3,190 units sold in February 2009. The price median for condos fell by a sharp 15 percent to only $92,200 year-over-year.

With the continued rise in Miami Pre Foreclosures, particularly in the condo sector, condo prices have been keeping their downward trend.

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