Is the Government Betting Its Foreclosure Listings on an Uptick in the Hillsborough Market?
There was a very interesting finding in one of the recent RealtyStore reviews of foreclosure trends . The study found a higher level of listing incidence for government owned foreclosures vs. banks in Hillsborough County, Florida.
Looking at both the standing inventories of banks as well as GSE's (government sponsored enterprises), including HUD homes and local Fannie Mae foreclosure inventory, it was discovered that government owned foreclosure listings are being actively marketed at a higher rate than the national average.
On a national basis, RealtyStore finds nearly 62% of real estate foreclosures owned by government sponsored entities are actively listed for re-sale. Their shadow inventory is running at about 38% of their total foreclosure portfolio nationwide.
However, in Hillsborough County, Florida, with much of the inventory reflected in the Tampa market, the shadow inventory for government foreclosures is only 26%, as 74% of the local portfolio is now on the market. This is a 19% higher listing incidence in Hillsborough than the nation at large.
Banks in Hillsborough County are moving in the opposite direction of national trends. Nationwide, banks list an average of 51% of their foreclosure portfolios on the local public market. In Hillsborough, that number is 45%, so more bank foreclosures are being held off the market here. Looking at it another way, about 12% more of the banks local inventory in Hillsborough is being withheld from active listing at the moment.
The difference in listing rates and pricing strategy between banks and Uncle Sam is something we'll continue to watch.
For now, it looks like the best pickings of foreclosures in Tampa and Hillsborough County are from government owners.
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