First Signs of Supply Slowing in Repossessed Properties in Florida

According to the latest data there are now signs that the massive volumes of repossessed properties in Florida coming up for sale.

According to data from the LPS Mortgage Monitor, while repossession starts are still higher than last year, mortgage delinquencies — of which Florida has the highest number — are starting to ease.

The data shows that the number of delinquent loans; those 30 days behind on payments was down 14.2% in August compared to last year, and down 1% compared to July. The number of seriously delinquent loans, those 90 days behind fell 11.5% on the year and 1.3% on the month.

The inventory of delinquent loans as a percentage of the US mortgage market is now 9.22%. With the exception of a small rise in a May blip this has been falling month on month from the January peak of 10.97%.

Foreclosure inventory now at 3.80%, on the other hand has been rising since June, although the data does show that it was falling each month between February and June.

Delinquencies maybe falling, but it is when you look at the foreclosure starts that you realise the banks are still far from coming to terms with the level of write downs still needing to be made. Unlike delinquencies and foreclosures, which have risen and fallen consistently for long periods of time, the foreclosure starts table is like a rollercoaster.

In September 2009 starts rose from 272,058 to 277,034. In October they fell to 255,863 and fell again in November to 220,429, before rising again in December to 234,593, and rising again in January to the new high of 287,865. They fell drastically again in February to 236,279. Rose in March to 250,174. Fell in April to 219,666. Rose in May to 237,198, fell to 225,807 in June, back up to 279,838 in July, and up again in August to 282,528.

As you can see, we are still dealing with huge numbers here, but everything in the US is on a bigger scale, and that includes buyers and investors. Tens of thousands of investors from around the world are joining their US counterparts in snapping up these properties. According to recent data from the National Association of Realtors, Florida property is most popular with foreign buyers, as it has been for the last several years.

Download NAR report: research_intl_survey_2010