There’s both good news and bad news on the foreclosure front for Boca Raton real estate.

The good news? According to RealtyTrac’s Year-End 2011 U.S. Foreclosure Market Report™, total U.S. foreclosure activity and the foreclosure rate were both at their lowest annual level since 2007.

The bad news? Foreclosure levels were artificially lowered due to delays following the robo-signing scandal. However, those delayed foreclosures will likely reappear in 2012.

There were strong signs in the second half of 2011 that lenders are finally beginning to push through some of the delayed foreclosures in select local markets. That trend is expected to continue this year. Fortunately, both the financial and government sectors are more committed than ever to finding alternatives to foreclosure, including short sales. In fact, Bank of America expects a 60-70% increase in short sale closings this year.

Veros Real Estate Solutions recently released its real estate market forecast 2012. Their findings indicate “the national housing recovery will continue to be gradual and slow without any significant changes in markets.” They predict up to four percent appreciation in the strongest markets, including Fargo and Bismark, North Dakota; the Washington, D.C. area; Honolulu, Hawaii; and Anchorage, Alaska. Veros is also projecting the five weakest markets—which include areas of California, Nevada and Florida—to depreciate five to six percent over the next year.

On Jan. 4, Federal Reserve Chairman Ben Bernanke sent a letter and white paper to Congress outlining his insights and recommendations on restoring the health of the U.S. housing market.

Among the key findings on current market conditions:

  • Housing prices remain 33% below their early 2006 peak
  • Currently, 1 in 5 mortgage holders are underwater (12 million homeowners)
  • In states with the price declines (i.e. Nevada, Arizona and Florida) roughly half of all mortgage borrowers are underwater on their loans
  • The number of properties currently in the foreclosure process is more than four times larger than the number of properties in REO inventory

The white paper suggests that no single solution exists and that progress will come through “persistent and careful efforts to address a range of difficult and interdependent issues”—a position we have always stressed. Among these efforts, the paper strongly recommends incentives for alternatives to foreclosure, namely a short sale or deed-in-lieu.

The white paper also emphasizes a fact we are all too aware of: foreclosures drive down property values in the surrounding area and lead to a “ripple-effect” that harms homeowners, lenders and taxpayers alike.

One of the scariest figures we’ve heard in a long time is that almost 90% of all homeowners that go into foreclosure have never talked to a Realtor about how a loan modification or a short sale can help them out of a horrible situation.

It’s Still A Local Market

Statistically Palm Beach County real estate is showing a 19.7% decline in the number of homes on the market. Sales for the 4th Qtr of last year were up 10.3% over the same Qtr of 2010. The Average Sold Price was virtually the same as the year before and the days on market has dropped slightly.

In West Boca Raton (West of the Turnpike), the numbers are even better. The listing inventory is down 24% while sales in the 4th Qtr of 2011 were UP 18.7% over 2010. Both the median and average prices have declined slightly as has the average time it’s taken for a home to sell.

Locally for Boca Raton real estate, the news is nowhere as scary as you read in the national news or hear in the media. The reality is that overall Boca Raton real estate is a strong market!  Personally we can tell you that when homes are priced correctly for the market, and the home is in “showable” condition, we receive multiple offers on it.

As your Boca Raton neighborhood real estate experts and trained Certified Distressed Property Experts, we can share with you the benefits selling your home with The Bass Group. Give us a call today at 561-251-3520 and talk to one of our trained experts or visit us online at www.BassGroup.com