What Nevada can learn from Florida with the Foreclosure Fiasco from this one very simple to understand foreclosure report provided by Tallahasse Real Estate Broker Joe Manausa that follows this commentary.
Obviously with the recent decimation of Las Vegas Bank Owned Inventory for Sale in Nevada due to the passage and implementation of AB 284 which some have noted to be the strictest "Robo-Signing" law in the land, total inventory available for sale has been decimated to 2004 levels and has caused a double digit year over year appreciation rate for August 2012 when it comes to the Median Price of a Las Vegas home.
A couple of years ago, Florida enacted some similar measures when it came to the Robo-Signing scandals and you can see from the charts that John Provides (#2 and #3) what happened to foreclosure filings specifically during the time frame of November 2010 through May of 2011. They dropped like a rock... Certainly not because all of a sudden homeowners started paying their mortgages but because of legislation that delayed the inevitable.
Now.. pay attention to what has been taking place in his market for the past couple of months with the BIG increase in Lis Pendens filings. (Similar to Notice of Default filings in Nevada but in Florida the first official stage of the foreclosure process is filing a Lis Pendens on the property. Florida is a Judicial foreclosure state where the foreclosure process HAS to go through the court unlike Nevada where the Non-Judicial foreclosure process is an option. The Judicial Foreclosure process IS available in Nevada and in fact.. I have personally seen one and also recently saw a Lis Pendens filed on somebody else about to get a rude awakening.)
Lis pendens filings skyrocketing to all time highs, Foreclosure Sales hitting all time highs and I think it's safe to say that pretty soon, home values in his market are going to be tanking.
It's pretty crystal clear that all of the intervention that took place in late 2010 and early 2011 for the Tallahassee and Florida Real estate market are ending up as a failure and only delayed the inevitable.
Joe gives some great advice to Tallahassee home owners who might be on the fence about selling their home:
"But if you are looking to sell a home to either avoid a foreclosure or to pull the remaining equity from your home, my best recommendation is to either beat the heart of this wave or wait several years until it has completely passed through the market."
If I was looking to buy or sell real estate in Tallahassee, Joe would certainly be my real estate agent because he understands and provides information that helps predict what's about to happen.
Will the same thing Eventually happen in Nevada and more specifically Las Vegas? Read the report below with everything I just mentioned concerning the passage and implementation of Nevada AB 284 last October and it should be pretty easy for you to answer.
Prudential Americana Group, Realtors
Las Vegas Real Estate
For our patient readers who have been waiting for the Tallahassee foreclosure update, the news is finally here.
And while our previous warning that the foreclosure situation in Tallahassee would become severe, it took the August home sales data to really understand how big this wave just might be.
Tallahassee Foreclosure Perspective
This first foreclosure graph provides perspective.
The green lines show the annual number of lis pendens filed, while the red lines show the annual number of foreclosure sales in Tallahassee. The blue line shows the ratio of sales to filings (meaning this is the number of non-performing loans that made it all the way through the foreclosure process and the property traded hands).
In 2011, there were 2,649 existing home sales recorded in the Tallahassee MLS, and right now, the lis pendens trend has reached 1,844 annual lis pendens filings. That means the wave of these non-performing loans represents an amount of foreclosure sales equal to 70% of the current rate of home sales!
New Tallahassee Foreclosure Filings
The real estate graph below shows that the trend of new lis pendens filings has been rising for 11 months. We can see that the trend once peaked at 170 filings per month, but the robo-signing scandal sidelined the growth for over a year.
Currently, we are seeing more than 150 lis pendens filed each month, and the market is likely to record a new high before the end of the year.
Tallahassee Foreclosure Sales
The final foreclosure graph shows the actual sales that been the result of those lis pendens filings. Note that the one-year trend has reached an all-time high.
If you are looking to buy a Tallahassee foreclosure, the offerings should be significant for the next several years.
But if you are looking to sell a home to either avoid a foreclosure or to pull the remaining equity from your home, my best recommendation is to either beat the heart of this wave or wait several years until it has completely passed through the market. And if you want to us to help you review all of your options and likely results, just drop me a note and we can schedule a time to review your specific situation.
Remember, whether selling a home or buying a Tallahassee foreclosure, knowledge is power and you can make the most of your situation by being fully informed.Joe Manausa, MBA
Century 21 Manausa & Associates