More Than 1 In 4 Homes Sold Is "Distressed"

By
Real Estate Agent with Joe Manausa Real Estate 8508880888
https://activerain.com/droplet/khH

We have been keeping an eye on REO and short sales in Tallahassee, wondering if there was going to be a gradual rise in distressed property sales as the year comes to a close. Our list of REO and short sale homes for sale in Tallahassee has remained fairly stable, but the same cannot be said for closed sales. The summer months saw a turn-away from these types of sales, as the percentage of non-arms-length home sales declined after a 3 year run of growth.

The following is an interactive map which shows reo sales and short sales in Tallahassee, going back to the end of June this year. It provides a great visual for the concentration of distressed property sales, and by clicking on each property, you will see the details on the sale.

Map Of Recent REO And Short Sales In Tallahassee

Note: If you receive the Tallahassee Real Estate Blog by email, the interactive map must be utilized on the website (just click here to link to the Tallahassee Real Estate Website)

REO And Short Sales In Tallahassee Change Trend

The trend of falling distressed property sales has reversed, as the past two months have shown a higher percentage of REO property sales and short sales in the Tallahassee MLS. More than 1 in every 4 home sales is "non-arms-length" and we expect to see this trend continue to rise during the slower sales cycle that usually begins in September.

REO And Short Sales Tallahassee Florida

Short Sales In Tallahassee

Roughly 1 in every 8 homes sold in Tallahassee is a short sale, and the short sales trend is rising. With home values dropping, more people are finding themselves in homes where the mortgage is higher than the value of the home. When people in this situation are faced with a need to sell their home, often times, a short sale is their best solution (you can read all about short sales in our 81 page e-book "Should I Short Sale My Home?").

Short Sales Tallahassee Florida

The following table shows the last 150+ REO and short sales in Tallahassee, which includes information about each home and what type of sale it was.

map of reo and short sales in Tallahassee

close

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Ambassador
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Lenn Harley
Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA
Real Estate Broker - Virginia & Maryland

Interesting.  I just took a look at August SOLDs in one of the counties in my market area and only 11% were distressed sales.

 

Sep 27, 2011 06:10 AM #3
Rainmaker
317,101
Pat Laracy Baker
Realty Executives Boston West - Holliston, MA
Pat Baker Dream Home Maker

I want to run far away from the distressed and foreclosure homes.  I have wasted so much time on these. Trouble is they are there and when someone can't afford much they end up in the list to view.  I see the whole thing as a nightmare rats nest.  It has to be so hard in so much of the country now with so many and so many distressed homes yet to come to market

Sep 27, 2011 06:45 AM #4
Rainmaker
1,160,912
Joe Manausa
Joe Manausa Real Estate - Tallahassee, FL
Tallahassee Real Estate

Hey Lenn, that would be a high figure for us historically ... but I'd take it now.

Sep 27, 2011 07:32 AM #5
Rainmaker
1,160,912
Joe Manausa
Joe Manausa Real Estate - Tallahassee, FL
Tallahassee Real Estate

There's no running for the next five to ten years Pat ... they are here to stay.

Sep 27, 2011 07:32 AM #6
Rainmaker
1,019,971
Rob Arnold
Sand Dollar Realty Group, Inc. - Altamonte Springs, FL
Metro Orlando Full Service - Investor Friendly & F

Fortunately Tallahassee has a little more job stability than other areas of Florida due to the big universities and the government jobs.  Here in Orlando, I believe at one point last year we were over 60% of all sales being short sales or REOs.  I believe it is a little lower than that now, but not by much.

Sep 27, 2011 07:57 AM #7
Rainmaker
1,160,912
Joe Manausa
Joe Manausa Real Estate - Tallahassee, FL
Tallahassee Real Estate

Thanks Rob, but you've got the Mouse!

Sep 27, 2011 08:01 AM #8
Rainmaker
1,827,067
Michael J. Perry
KW Elite - Lancaster, PA
Lancaster, PA Relo Specialist

Either way it appears all buyers are searching for great values !!!!!!!!!!

Sep 27, 2011 08:16 AM #9
Rainmaker
571,718
Bill Gillhespy
16 Sunview Blvd - Fort Myers Beach, FL
Fort Myers Beach Realtor, Fort Myers Beach Agent - Homes & Condos

Hi Joe,  Interesting ( and a bit scary ) stats.  Your graphs are the best - mind sharing the software ?

Sep 27, 2011 08:19 AM #10
Rainmaker
346,318
Dawn Maloney
RE/MAX Trinity Northeast Ohio Real Estate Specialist - Hudson, OH
330-990-4236 Hudson & Northeastern Ohio

Great charts! Sad news though. We are in the trenches here too. Our property transfers are low and lots are the sheriff sales...but definitely not all. I need to check the figures to see what our numbers are.

Sep 27, 2011 08:23 AM #11
Rainmaker
1,160,912
Joe Manausa
Joe Manausa Real Estate - Tallahassee, FL
Tallahassee Real Estate

Thanks Dawn, and yes very sad. It's good to keep an eye on these, as it will give you a better feel for pricing guidance.

Sep 27, 2011 08:27 AM #12
Rainmaker
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Joe Manausa
Joe Manausa Real Estate - Tallahassee, FL
Tallahassee Real Estate

Hey Bill, thanks. I do them in MS Excel.

Sep 27, 2011 08:35 AM #13
Rainmaker
1,160,912
Joe Manausa
Joe Manausa Real Estate - Tallahassee, FL
Tallahassee Real Estate

That seems to always end up being the case Michael, value!

Sep 27, 2011 08:36 AM #14
Rainer
10,101
Peter Reese
Pacific Grand Estates - Rancho Santa Fe, CA
Luxury Real Estate Agent - Rancho Santa Fe

Great charts & data Joe!!  Being here in Southern California, 100% of the homes I have sold this year are distressed.

Sep 27, 2011 09:52 AM #15
Rainmaker
1,468,618
Donna Harris
Donna Homes, powered by JPAR - TexasRealEstateMediationServices.com - Austin, TX
Realtor,Mediator,Ombudsman,Property Tax Arbitrator

These are some great charts. It's interesting to see sales in other markets because we don't have many foreclosures/distressed sales in most of the Austin area.

Sep 27, 2011 10:01 AM #16
Rainmaker
1,160,912
Joe Manausa
Joe Manausa Real Estate - Tallahassee, FL
Tallahassee Real Estate

Ouch Pete! But of course, I project your percentage of distressed properties will decline :)

Sep 27, 2011 10:19 AM #17
Rainmaker
1,160,912
Joe Manausa
Joe Manausa Real Estate - Tallahassee, FL
Tallahassee Real Estate

Thanks Donna, I'm very jealous of the Austin real estate market. From the outside, it appears as if you Texans have the smartest growth management system in place.

Sep 27, 2011 10:20 AM #18
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Christine Donovan
Donovan Blatt Realty - Costa Mesa, CA
Broker/Attorney 714-319-9751 DRE01267479 - Costa M

This is good information for both buyers and potential sellers in the Talahassee area.

Sep 27, 2011 03:02 PM #19
Rainmaker
1,160,912
Joe Manausa
Joe Manausa Real Estate - Tallahassee, FL
Tallahassee Real Estate

Thank you Christine. I can't imagine buying something so expensive as a home without total research and preparation.

Sep 27, 2011 03:15 PM #20
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Peter Pfann @ eXp Realty Pfanntastic Properties in Victoria, Since 1986.
eXp Realty, Victoria BC www.pfanntastic.com - Victoria, BC
Talk To or Text Peter 250-213-9490

Hi Joe,

great looking market report, not knowing your area, the information is clear very easy to read and understand, well done, thank you for setting an excellent example.

 

Oct 04, 2011 03:22 PM #21
Rainmaker
1,160,912
Joe Manausa
Joe Manausa Real Estate - Tallahassee, FL
Tallahassee Real Estate

Thank you to the Pfann clan! That was a very nice thing to say.

Oct 04, 2011 11:21 PM #22
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