Miami Pending Sales Explode in First Qtr 2010…Why?
Short sale condos pending contract exploded in the first quarter of 2010 in Miami-Dade county. These are the contracts for short sale listings that have yet to be approved by the seller’s lender or lenders. Although the pending sales growth initially looks like a good indicator for the housing market, it may really be meaningless as many short-sales never actually close but instead become bank owned foreclosures. As you can see there is no real corealation between pending contracts and closed sales. Even though actual closed short sales listings have more than doubled from the first quarter of 2009, they still represent only 20 percent of the closed sales. Lenders take months to approve short sales if at all.
Bank owned foreclosure properties sales have dropped from the first quarter 2009 by 29 percent but still represent over 40 percent of all sales in Miami condos. There is a direct correlation between pending and closed sales.
With distressed properties making up over 60% of all closed sales, it is a very good idea to contact a Miami Realtor for the best advice and to arrange ones financing prior to trying to buy any Miami Condo.