3rd Party Success Rate at Palm Beach County Foreclosure Auctions Dips
For the second straight week we have seen a very significant decrease in the number of foreclosures finalized in Palm Beach County after we started the year off with a surge. Overall projections for the year still remain high with most analysts expecting higher numbers than we had last year. Investors are still actively participating in these auctions as the rental market remains red hot throughout the area.
The chart above shows you the six-month trend of foreclosures in Palm Beach County which accurately reflects the trend over the past 26 weeks. Last week the actual foreclosure numbers jumped a significant 39% from the previous week but still the 5th lowest weekly total we have had over the past six month period. A total of 147 properties were foreclosed upon which was well ahead of the 106 we had the week before. With that increase we are still well below the 6 month average which currently stands at 203 and also well back of the 287 units foreclosed on in the same week of 2011.
We continue to see third party bidders doing quite well at these auctions but for the first time in 14 weeks their overall success rate dipped below 15%. This was on the heels of the amazing 26.42% rate they enjoyed just a week ago. Last week 14.29% of all auctions went to these third party bidders.
The Federal Housing Financing Agency which is the regulator in charge of both Fannie Mae and Freddie Mac is now accepting pre-qualification applications from investors as the government moves forward with their plans to turn over 180,000 government owned foreclosures into rental properties. Nobody knows for sure when the program will officially “kick-off” it sounds like it will probably be at some point early in the second quarter.
One thing is certain and that is until we are closer to the end of what seems like a never ending supply of distressed properties it will be harder for many segments of the local real estate market to hit a firm bottom.