If you’re thinking that Boca Raton home prices are due for a quick turn around, think twice. In fact, think 292,000 times.
That’s the number of delinquent mortgages in Florida that were reported as of December of 2011, based on figures from Fannie Mae and Freddie Mac.
And, of that large number, more than 166,000 are in their second year of the ever slowing process of foreclosure.
This means that well over 200,000 homes will continue to flood into the Florida real estate market during the next couple of years.
Even though California is the largest state in the union, it had only 175,000 loans that were delinquent and only 20% of those were late for more than a year.
Florida Foreclosures move at a glacial pace.
What makes Florida so slow to process foreclosures is our court system, which is backlogged. Much of that slowdown was due to controversies generated by the “robo-signing” debacle, where bank workers and employees of a certain few law firms routinely stamped paperwork without regard to its content.
However, more worrisome for future home prices, are the more than 30,000 foreclosure cases in Palm Beach County and more than 40,000 cases in Broward County that are sitting around, waiting for some form of adjudication by the court system. Add about 250,000 more statewide and you can see why home prices in Florida, continue to lag behind those of other states.
Now, add to that the astoundingly glacial pace for foreclosures — it takes an average of 800+ days to process a foreclosure in Florida – – and you can see that prices of homes in Boca Raton, along with the rest of the state, are not likely to rise too quickly.
Of course, we Floridians can take some comfort that two of the most progressive states in the nation–New York and New Jersey — take even longer than we do (1000+ days and 960+ days, respectively) to process their foreclosures.
The good news behind of this is that we will have a few more years of serious bargain hunting ahead of us. So come on buyers, let’s go find your dream home at discounted prices.