Foreclosure Rate On The Rise (AGAIN)

By
Real Estate Agent with Joe Manausa Real Estate 8508880888
https://activerain.com/droplet/q75

If you are somebody who tracks Tallahassee foreclosure activity as a way to forecast the future of distressed property sales, then you most likely know that new Tallahassee lis pendens filings are on the rise again. This means that more distressed properties are on the way to join the glut of homes for sale in Tallahassee.

We have been anxiously awaiting the November Foreclosure Report (as we have for the most recent months since the supposed end of the “robo-signing” scandal earlier this year) knowing that the new lis pendens reports will all but forecast the supply side of the 2012 housing market.

We suspected that the reason foreclosure activity had been falling for the past year was due to the many halts the courts had caused when the scandal broke. We warned that it was likely we would see a future rise occur, and this month might be providing the evidence that we feared would come.

Tallahassee Lis Pendens On The Rise

In the graph below, new lis pendens filings are shown in red each month, while the purple line measures the one-year trend of filings. As you can tell, the past two months have revealed a change in the downward trend. Tallahassee lis pendens filings are now on the rise and we have to wonder how much "catch-up" is needed by the banks to recover lost time and money due to the robo-signing scandal.

Lis Pendens Filings Trend Tallahassee Florida

Tallahassee Lis Pendens By Zip Code

Different areas of Tallahassee are going to feel the impact of foreclosure sales (and short sales and pre-foreclosure sales) in varying levels of intensity. For example, if you have to sell a home in the 32303 zip code, you can expect that many homes with which you will be competing for a buyer will be in distress.

Lis Pendens Filings Tallahassee Florida Zip Codes

Year over Year lis pendens filings have risen in 3 out of the past 4 months, but foreclosure sales increased in November for the first time since nearly a year ago in December (the first impact of the robo-signing scandal). This could be the beginning of many months of “pent up” foreclosure starts, so we must continue to sit on pins and needles awaiting future results.

The Tallahassee real estate market is already comprised of roughly 38% distressed properties, and new lis pendens could be a signal that the next few years will have plenty more distressed properties to deal with. If you are looking for direction in what you should do or want to know how to get out of your present housing situation, just drop me a note and we can schedule a time to discuss your options and opportunities.

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Rainer
409,549
The Keith Kropp and Wayne Rogers Team
Atchley Properties - Sarasota, FL
Keeping The Focus On You!

Hi Joe

Interesting post.  I believe foreclosure filiings are on the rise everywhere.  They incresased 57% in the Sarasota-Bradenton market in the third quarter of this year, the third highest rate in the country.  No one seems to be talking about it, but I don't think this bodes well for the real estate market.  Everyone seems to be emphasizing how great things are.  I hope they are right, but the foreclosure forecast is looking pretty gloomy.  Time will tell. 

Dec 22, 2011 08:40 AM #1
Rainmaker
1,162,483
Joe Manausa
Joe Manausa Real Estate - Tallahassee, FL
Tallahassee Real Estate

I believe you're right Keith ... these foreclosures will be tomorrows value-dropping market movers.

Dec 22, 2011 08:42 AM #2
Rainer
409,549
The Keith Kropp and Wayne Rogers Team
Atchley Properties - Sarasota, FL
Keeping The Focus On You!

I agree.  I'm also concerned about the high level of cash sales.  In both the Orlando and Sarasota markets, cash sales are accounting for 60% of all sales.  This is unbelievably high, and I don't know how long this trend can continue.  What are you seeing in Jacksonville?

Dec 22, 2011 08:46 AM #3
Rainmaker
1,162,483
Joe Manausa
Joe Manausa Real Estate - Tallahassee, FL
Tallahassee Real Estate

Keith, I'm in Tallahassee. The numbers are no where near 60%, but they are higher. I think it's about the same number as we would expect, it's just the financed buyers have fallen through the floor.

Dec 22, 2011 11:57 PM #4
Rainer
409,549
The Keith Kropp and Wayne Rogers Team
Atchley Properties - Sarasota, FL
Keeping The Focus On You!

Sorry about that, I must have had a brain freeze.  Yes, the banks have definitely over reacted.  However, they are too busy making money on the trillions the Fed lends them at .01%.  Why not?

Dec 23, 2011 02:42 AM #5
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Rainmaker
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