Foreclosures on the Rise Again in South Florida, According to Latest Report

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It’s no secret that foreclosures have been a hot topic lately, and the latest report from Attom shows South Florida isn’t escaping the heat. While the rest of the country saw a slight dip in foreclosure filings, South Florida is moving in the opposite direction with numbers creeping up.

According to the report from property data company Attom, foreclosure filings nationwide dropped by 2% in the third quarter of 2024 compared to the previous quarter and saw a 13% decline from last year. But in the Miami-Fort Lauderdale-West Palm Beach metro area, the story’s different. In Q3 2024, there were 2,842 properties with a foreclosure filing in the region, marking a 3.57% increase from the previous quarter and a 5.03% jump from the same time last year. That puts South Florida in the fourth spot for the most foreclosure filings among large U.S. metro areas.

Within the tri-county area, Broward County is leading the charge, with 1,059 properties under foreclosure—a 7.29% increase year-over-year. That means one out of every 812 properties in Broward is facing foreclosure.

Palm Beach County also saw a notable surge, with 789 properties in foreclosure, jumping a whopping 19.18% from Q3 2023. Meanwhile, Miami-Dade fared a little better, seeing a 5.96% drop in foreclosures, with 994 properties under filing.

So, what’s going on here? One factor could be Florida’s new law that kicks in on Dec. 31, requiring older condos (those taller than three stories and over 30 years old) to undergo more intense and costly inspections. This has caused a noticeable dip in demand for condos in older buildings, and some experts are pointing to this as one of the reasons for the rise in foreclosures in the area.

And it’s not just South Florida feeling the squeeze. Statewide, Florida has the third-highest foreclosure rate in the country, with one out of every 971 properties in some stage of foreclosure. That’s behind only Illinois and Nevada.

But not all Florida metro areas are seeing spikes. Places like Jacksonville, Tampa-St. Pete, and Orlando have experienced decreases in foreclosure rates year-over-year, even if the numbers aren’t massive. For example, Jacksonville saw a 12.13% drop in foreclosures, while Tampa-St. Pete had a slight 0.82% decrease.

On the flip side, other areas like Port St. Lucie and the Crestview-Fort Walton Beach-Destin area have seen significant increases, with Port St. Lucie’s foreclosure filings jumping a staggering 68.33%.

With rising costs of living, increased inspections, and an unpredictable housing market, the situation in South Florida is one to keep an eye on. As foreclosure rates continue to climb, the question remains: How much higher will they go?

If you’re in the market, it’s definitely a time to stay informed, whether you’re buying, selling, or just watching the housing landscape shift.