on Wednesday, March 7th, 2012 at 11:03am.
If you've been considering a trip to Miami and want to check out some foreclosure properties while you're there, this post is meant for you!
Here is an interesting thing to consider: the current rise of foreclosure homes in Miami is not because of some unique facet of that particular market but is instead due to the fact that the wealthy are now having to take many of the same steps required by those of lesser income at an earlier time.
What this means is that some people with stronger financial positions were able to hold off on the need to go into foreclosure for a longer period of time, but with the economy holding at the current levels, have found it necessary to "unload" their luxury properties, or to simply deal with the fact that foreclosure is the only option. This is a boon to those seeking bargains in the Miami area.
For instance, data from RealtyTrac has shown that nationally less than two percent of home foreclosures are on properties valued at one million dollars or more. The interesting thing about that information is that Miami has around nine percent of its foreclosures already at that million-plus dollar amount.
Now, this is due to some obvious reasons. Firstly, Miami is far more of a luxury real estate market than many other parts of the country. Just consider that between the years of 2005 and 2009 there were literally thousands of upscale and luxury condominiums built and sold along the Miami waterfront. This means that it is a place in which any foreclosures are bound to involve homes or properties with much higher prices.
This doesn't mean that it is the only place in the country with properties of such value being foreclosed on, however, and the same RealtyTrac data indicated that nationally the number of homes with a "seven figure" price tag has grown by more than 115 percent since the year 2007.
So, the fact that million dollar properties are facing foreclosure isn't unique to Miami, what is unique is the number of such properties and cases. As already explained, this is due to the famous "location, location, location". After all, Miami is a great place to live, retire, have a second home, or simply to own an investment or income property.
Thus, the recent increase in the numbers of home sales and prices of those sales in the Miami region reflects the popularity of the area and also the simple fact that the "inventory" of such bargain prices is going to be limited.