Brevard County Foreclosures on the Rise?
Welcome to Rick Houston's foreclosure blog! As a trusted real estate advisor in Brevard County who always goes above and beyond for clients, Rick predicts a natural regression of real estate prices in the area in the next few years due to an expected flood of foreclosures.
According to WESH 2, foreclosure filings have increased 23% nationwide, with Florida ranking third in new filings with 4,724 in the first quarter of 2023. The Palm Bay area, with a population over 200k, is among the leaders in the state.
Experts attribute the rise in foreclosures to the sharp increase in prices of basic goods like gas and food without a corresponding increase in household income. Pandemic funds that supported the economy for the past two years are depleted, and mortgage forgiveness programs have ended. This has led people to put food on the table instead of paying their mortgages.
Furthermore, new insurance requirements for homeowners and condo owners have created an insurance crisis that has doubled and tripled costs. Stay informed with Rick Houston's blog on everything foreclosure-related.
Weekly stats regarding Bank Owned and HUD Owned homes will be posted here directly from the Space Coast Multipe Listing Service (MLS) for reference.
Here are the baseline stats for June 13, 2023. Expect these numbers to rise sharply over the next several months:
Bank/HUD Owned Homes for Sale today in Brevard County, FL: 6
Bank/HUD Owned Homes Closed or Pending so far this year: 53
Daily Mail reported on June 5, 2023 that $1.5 trillion dollars of mortgages are coming due
In the next two years, there are $1.5
trillion in mortgages that are set to expire. This could potentially lead to a
financial crisis as higher interest rates are causing property values to
decrease. Big banks such as Wells Fargo are already preparing to sell off debts
at a discount, even if borrowers are current on payments - a clear indication
of their lack of faith in the commercial real estate market.
Remote work, which has become
prevalent since the pandemic began, has caused office vacancy rates to
skyrocket. This, combined with higher interest rates, has further contributed
to the decrease in property values, making it difficult for potential buyers to
invest. This has resulted in some lenders being willing to take a loss on their
real estate loans, even if the loans are currently performing.
Experts are warning that the real
estate market is the "next shoe to drop" following recent banking
industry turmoil. This could lead to another recession caused by a mortgage
crisis, making it important for individuals and businesses to approach the real
estate market with caution in the coming years.
You may view foreclosures listings live by clicking here: Up-to-the-minute Foreclosure Listings in Brevard County
You can subscribe to the weekly list of new foreclosure listings here: Subscribe to Foreclosure Listings in Brevard County