Foreclosures Continue to Climb in Q1 Carrie Bay | 04.16.09
RealtyTrac released its U.S. Foreclosure Market Report for the first quarter of 2009 on Thursday, which showed that one in every 159 housing units in the nation received a foreclosure filing during the first three months of the year. Total foreclosure filings — including default notices, auction sale notices, and bank repossessions — were reported on 803,489 properties, a nine percent jump from the previous quarter and an increase of nearly 24 percent from the first quarter of 2008.
The month of March saw a record level of foreclosure activity — the number of households that received a foreclosure filing was more than 12 percent higher than the next highest month on record, RealtyTrac said. Nationwide, foreclosure filings were reported on 341,180 properties in March, a 17 percent increase from the previous month and a 46 percent increase from March 2008.
Much of this activity was in new foreclosure actions, suggesting that many lenders and servicers were holding off on executing foreclosures due to industry moratoriums and in anticipation of the new government housing programs. Bank repossessions (REOs) actually decreased based on RealtyTrac's market data, down 13 percent for the quarter and 3 percent from February to March. However, RealtyTrac warned that we'll likely see REO numbers start to rise as the backlog of foreclosures begins to wind through the process.
The March and Q1 numbers were the highest monthly and quarterly totals since RealtyTrac began issuing its report in January 2005.
RealtyTrac's CEO James Saccacio offered a positive note in the midst of the dismal numbers. “It appears that demand is up in some of the harder-hit areas, particularly on bank-owned REO properties that first-time homebuyers and investors see as bargains,” Saccacio said. “But it’s unlikely that this increased demand will be enough to offset the growing number of foreclosures in the pipeline, accelerated by rising unemployment rates.”
Nevada continued to document the nation’s highest state foreclosure rate in the first quarter, with one in every 27 housing units receiving a foreclosure filing — more than five times the national average. Total foreclosure filings in the state increased by 19 percent from the previous quarter. Bank repossessions in Nevada were down 3 percent, but defaults increased 27 percent and auction sale notices increased 35 percent. On an annual basis, Nevada's foreclosure activity in Q1 was up nearly 111 percent.
Arizona posted the nation’s second highest foreclosure rate for the first quarter of the year, with one in every 54 housing units receiving a foreclosure filing. California came in at No. 3, with one in every 58 homes in foreclosure.
Other states with foreclosure rates ranking among the top 10 in Q1 were Florida, Illinois, Michigan, Georgia, Idaho, Utah, and Oregon.
Five states – California, Florida, Arizona, Nevada, and Illinois – accounted for nearly 60 percent of the nation’s foreclosure activity in the first quarter, with 479,516 properties receiving foreclosure filings among them.
Did you know that in addition to our BILOXI office we now have a MIAMI location. Since Mid 2006, as the Florida Real Estate Market began to take a turn downward, I began my campaign to let people know that Biloxi, MS is a special place and will experience real estate growth over the next several years. It's not too late to get in.... Recently, www.housingpredictor.com/top2008.html posted their results. BILOX, MS is ranked #1 for 2008 forecast appreciation. APPRECIATION???? YES, APPRECIATION! 4.9%, which does not sound like much when your accustom to double digit gains...but, now that Florida is experiencing double digit losses, 4.9% + SOUND GOOD..... 5 Diamond Management and Real Estate can find you the right investment. Whether your looking for land, a house or commercial real estate, we can help. Keep in mind.... We have relationships with national lenders, which allow us to exclusively market and sell their (REO) foreclosure properties in South Mississippi and in South Florida. NOW IS THE TIME TO BUY... Visit us on the web at www.5DiamondRealEstate.com e-mail: info@5diamondmanagement.com
Biloxi, Mississippi all but destroyed by Hurricane Katrina, is in the number one position. A government sponsored program is helping the area rebuild what was once the second largest casino business in the country to Las Vegas.
The Top 25 with the highest forecast appreciation have the greatest probability of reaching their forecast of the more than 250 local housing markets Housing Predictor forecasts.
Conservative North Dakota with one of the strongest statewide economies nationally, and the lowest subprime mortgage activity in the country, placed three cities on the list. Four states each placed three communities on the list.
Interestingly, the top markets for 2008 are scattered throughout all parts of the U.S. from the west to the east and into the southern states. No particular region of the country was more dominate than another as more and smaller communities based on population made the Top 25, which have less appreciation forecast than earlier in the year.
Wow... time has flown by... Here we are, just about year after we started our Biloxi office and now I just opened our Miami Location. We opened an office on Main Street, in the professional office space upstairs. As I did from 2001-2005 and again from 2007 to present, I am focusing almost exclusively on REO. Representing banks in the sale of their REO's may sound really good (and it is, IF YOU LIKE THE CHALLENGE). It is really though work and requires a high level of real estate knowledge, negotiation skill, technology, etc.
5 Diamond Property Management, in Biloxi, is happy to annouce that we are now the new property management company for the Trailwood Village Apartments in Gulfport. Click here for more information. The propery is located on Hendry Road, which intersects with Dedeaux Road. The property consist of 36 units.
Enjoy the privacy of your own backyard, Private parking. All units have washer/Dryer hook-up, Spacious rooms and kitchens, Central A/C and Heating. With apartment units for rent below $800, we are filling them up quickly.
So, it's the 6th of the month. As a landlord, you included a grace period, which allows the resident to pay rent without paying a late fee until the 5th. STILL NO RENT. So what do you do? How do you handle it?
Well first let me say that I am not giving legal advice, nor am I suggesting that you should follow my practices. I am just sharing inside information on how I go about handling late rent payments.
We are very clear with all our residents that they have until the 5th(grace period) to pay their rent, without penalty. We also make it very clear to them that on or around the 6th, they will receive a call from us. Regardless of the list of excuses given by the resident and the outcome of the conversation, we will post a 3-day "pay or quit" notice on or the 10th of the month. We explain, "it is not personal, it's business".
The 3-day notice is magical. It makes MOST excuses go away and we USUALLY get paid (and they are on time the next month). If we don't receive the payment, then we can proceed to file with the county for eviction. The court will usually set a court date within 10 days. The resident gets the "official" notice which is a summons to court. That gets most resident's attention and creates another round of magic and produces another opportunity to get paid. If that does not work, we know that we are probably going to have an eviction.
EVEN if a resident says "I will pay you on the 11th" we say, "great, but I am still going to have to post the 3-day notice on the 10th, but as long as you pay within the 3 days you are OKAY". They usually don't have a problem with it.
Posting lets them know that we are serious and about our business. If one month they pay on the 11th and nothing happens, then they may pay on the 15th the next month. Before you know it, they are running a month behind and we (and our owner) are short money.
The BOTTOM LINE for me is: Your rent is due! We (and our owners) are not in the business of lending you money that is owed to us. Borrow the money from someone else, if you need to, but pay your rent.
As a the Broker of a property management and real estate firm, I receive countly calls from investors from all over the US. "So, Eddie, what is the rental investment market like?" "what can I expect to rent my property for?". I decided to take a minute to BLOG. Maybe this will help some individuals.
I started my real estate career in Miami, FL in the early part of 1997. Five years earlier, Hurricane Andrew devastated the southern area of Miami. In its wake, Andrew left thousands of people homeless and set the Miami area back billions of dollars. At the time, many wondered if Miami would ever come back to what it had been. Many were concerned about the potential of another catastrophic hurricane, rising insurance rates and the high costs of construction. Shortly after the storm, at the end of 1992 early 1993, we had a peak in prices, then a short decline, followed by slow and steady growth.
In 1997, at the age of 21, I knew that real estate was the place to be in South Florida. I began selling, investing and managing real estate. The rest is history... The South Florida market BOOMED and people who were well positioned made millions. Real Estate investment is all about LOCATION and TIMING....
Fast-forward several years to August 29, 2005. Hurricane Katrina devastated the Mississippi Gulf Coast as the most destructive Hurricane to ever make landfall.
Unprecedented things have happened since Katrina:
- An estimated 65,000 homes were destroyed (more than twice the amount lost during Andrew)
- Federal support is continuing with more than $1.2 billion to individuals and families
- More than $2.3 billion has been obligated in Public Assistance
- Land based casinos approved on Oct. 17, 2005
- Congress approves the "GOZONE"- which offers extensive tax savings for investors, employers and business owners
- MDA (Mississippi Development Authority) offers several hundred million dollars in grant monies
- The City of Biloxi has issued over a billion dollars in building permits since Katrina
- In July 2007, Biloxi's casino industry reported a record-breaking $97.3 million in gaming revenue and Mayor Holloway said if the trend continues the city will earn a billion this year
The Mississippi Gulf Coast already has experienced a sharp increase in values, followed by a slow down in the market and now is beginning to see an increase in sales activity again. Based on the above facts and past post-hurricane market trends, we expect that our market will experience strong and steady growth over the next several years.
SO, what about the rental market?
Well, the same is true... Prior to Kartina the rent rates were 450-550 for a 2 bedroom apartment in Gulfport / Biloxi area, following the storm, the same apartment could rent for as much as $800, with a waiting list months long. That is about a 60% increase, OVER NIGHT!
NOW the market has settled down some. You can rent that same unit for $775-800/ month and it may take you 30-45 days to rent it.
We are seeing vacancy rates of around 5-8 Percent, which compared to most real estate markets, is pretty good. In addition, we have many factors which will contribute to the continued growth of the coast and a strong stable rental market.
Let us know if we can help you with your investment and management needs. CONTACT US
5 Diamond Property Management, in Biloxi, is happy to announce that we are the new property management company for the Jefferson Place Apartments in Long Beach, MS. Click HERE for more information about the rental property.
Theses spacious one and two bedroom apartment units offer all the amenity necessary for comfort and convenience. All units are equipped with Refrigerator, Stove, Vent hood, Dishwasher and Disposal. We also offer an on site laundry facility. We are a pet friendly community, call or e-mail for details... or check us out on the web at www.5diamondmanagement.com
5 Diamond Property Management, in Biloxi, is happy to annouce that we are now the new property management company for the Country Village Apartments in Gulfport. Click here for more information. The propery is located on Hendry Road, which intersects with Dedeaux Road. The property consist of 36 units.
Location, Location. Ideal spot just off Deadeaux Road and Hwy 49. Clean, spacious units, newly remodeled. Nice open floorplan with great closet space. 2 Floorplans - with or without washer/dryer connections. Onsite Laundry Facility. With apartment units for rent below $800, we are filling them up quickly.
Disclaimer: ActiveRain Corp. does not necessarily endorse the real estate agents, loan officers and brokers listed on this site. These real estate profiles, blogs and blog entries are provided here as a courtesy to our visitors to help them make an informed decision when buying or selling a house. ActiveRain Corp. takes no responsibility for the content in these profiles, that are written by the members of this community.
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