Lenders were repossessing south Florida houses and condos at a dramatically increased pace in the first weeks of 2008, a signal that the shaky Miami market is nearing capitulation, a prominent broker said on Friday.
REOs, or “real estate owned” by banks after failed foreclosure sales, rocketed up to 858 in January and February from 273 during the same period a year earlier, a 214 percent increase, according to data gathered from public records by Condo Vultures.
The data includes condos, houses and commercial space, although commercial represented only a small fraction.
“It’s starting to show that the moment of capitulation is near,” said Peter Zalewski, Condo Vultures founder, in an interview for the Reuters Housing Summit.
“Banks are now coming to us. In the last two weeks, I’ve had three REO bulk packages brought to me, between 150 and 300 units,” he said. “These are entire complexes in which the bank has foreclosed, took back the deed, and now is basically trying to sell it for anything they can get.”