Tallahassee Real Estate BlogRecently posted or modified blog posts in the category - Distressed Propertyhttps://www.manausa.com/blog/Copyright Manausa.com2021-08-25T23:00:06-07:00tag:manausa.com,2012-09-20:22167Will Distressed Properties Begin To Dominate The Housing Market Again?<img src="https://assets.site-static.com/userfiles/663/image/2distressed-properties-july-2021_.jpg" width="880" height="587" alt=" why these moratorium announcements are big news for the housing market" title="Will Distressed Properties Begin To Dominate The Market Again?" class="img_box_center" />The Biden Administration recently announced that it would use a "Presidential Announcement" to again extend the foreclosure moratorium for federally-backed mortgage loans. The new date for the moratorium termination has been set to July 31, 2021.
Additionally, many banks have expressed that they would not pursue foreclosures until the new year, meaning that somewhere over the next six months (and a few days), we should expect to see distressed properties return to the market.
Today, we'll take a look at the current distressed property listings in the Tallahassee MLS, and then we'll take a look at why these moratorium announcements are big news for the housing market.
Distressed Homes For Sale<br /><br />US Home Loan Delinquencies
The talking heads on YouTube have been forecasting a housing market crash when the floodgates open after the moratorium is lifted. I'm not so sure they are really paying attention though.
The best source of data that I found for determining the status of home loans in the US comes from Black Knight, one of the top providers of data and analytics for mortgage and home equity lending and servicing. Here's what Black Knight reports in its latest release on the status of US home loans.
<img src="https://assets.site-static.com/userfiles/663/image/us-home-loan-delinquencies-june-2021.png" width="880" height="641" alt="latest release on the status of US home loans" title="US Home Loan Delinquencies" class="img_box_center" />
In the graph above, we see the number of loans where the borrower is late on a payment, segmented into three groups. The blue line shows the number of loans where the borrower has not made a payment in the past thirty days, the red line shows loans 60 days late, while the gray line shows the number of loans that are more than 90 days late.
The numbers of loans 30 and 60 days late are already lower than pre-pandemic levels, but the number of loans that are 90 days late has spiked significantly higher, though it has been falling in 2021. This group of just under 1.8 million loans is about 1.2 million higher than pre-pandemic levels.
The green-dashed line measures the overall percentage of delinquencies which has fallen to 4.66% and sits around the same level as what we saw in 2016. When you track the green line across the graph, you realize that today is nothing like what we saw during the housing market collapse of more than ten years ago.
If we consider the years from 2000 to 2005 as "normal," then today's delinquency rate is just one-half a percent higher than what was measured then, and today's delinquency rate is falling!<br /><br />Forbearance Plans Are A Big Variable
A big variable in the distressed homes market will be those loans that have been on forbearance plans with the lenders. A forbearance is a process where the lender allows the borrower to temporarily pause making payments. The missed payments have to be repeated, usually by extending the term of the loan.
The following graph shows that yesterday was a big day for these loans.
<img src="https://assets.site-static.com/userfiles/663/image/scheduled-forbearance-plan-expirations-june-2021.png" width="880" height="641" alt="The dates for which scheduled forbearance plans will expire" title="Scheduled Forbearance Plan Expirations" class="img_box_center" />
More than 800,000 loans in forbearance should have come off that list yesterday, but it will take some time to see if they are extended, refinanced, satisfied, or moving towards default. Yesterday, there were nearly 2.2 million loans on forbearance plans and roughly 2/3rds will be expired by August 1st.
Knight reports that an estimated 7.2M homeowners entered into a COVID-related forbearance plan at some point since March of 2020, and roughly 70% have already ended their plans, leaving about 2.18M on plans that will expire from yesterday through the end of the year.
We'll continue to monitor both loan status changes and forbearance plans in order to provide insight into how distressed properties will impact the post-COVID housing market.2021-07-01T02:55:00-07:002021-08-25T23:00:06-07:00Joe Manausatag:manausa.com,2012-09-20:17297Only 8 Distressed Properties For Sale In Tallahassee Today<a href="https://www.manausa.com/property/4624-killimore-ln-tallahassee-fl-32309/pid-11968915/" target="_Blank"><img src="https://assets.site-static.com/userfiles/663/image/distressed-properties-for-sale-march-2021.jpg" width="800" height="533" alt="It doesn't seem that long ago that distressed properties dominated the listings in the Tallahassee MLS, but times do change" title="Distressed Homes For Sale In Tallahassee" class="img_box_center" /></a>It doesn't seem that long ago that distressed properties dominated the listings in the Tallahassee MLS, but times do change.
Today, there are only eight distressed properties for sale, and we'll both show them all to you and include a distressed property report below. The list does not include <a href="https://www.manausa.com/property/4624-killimore-ln-tallahassee-fl-32309/pid-11968915/" title="Short Sale Opportunity In Tallhassee">this one</a> that we put under contract recently.
Distressed Homes For Sale In Tallahassee
The following list of homes for sale is updated multiple times daily, so keep this page favorited if you want to stay informed on distressed listings in Tallahassee.<br /><br />How Healthy Is The Housing Market
One way to measure the health of the real estate market is to look at the percentage of distressed home sales that is being recorded.
<img src="https://assets.site-static.com/userfiles/663/image/housing-market-health-feb-2021.jpg" width="800" height="583" alt="the health of the real estate market: look at the percentage of distressed home sales that is being recorded" title="How Healthy Is The Housing Market" class="img_box_center" />
The graph above contains valuable insight into the health of the real estate market. The blue lines report the percentage of lis pendens filed versus the number of homes sold, while the red line measures the same for foreclosures.
In case you are new to our site, "lis pendens" can be viewed as the beginning of the foreclosure process, while "foreclosures" are the actual sale of the property by the lender. The difference between filings and foreclosures is those homes that resolve without a foreclosure sale or are awaiting resolution.
The lower each ratio, the lower the "bad" number of sales in the market. The graph above clearly shows that foreclosures have all but gone away. From the standpoint of distressed sales, the market is very healthy.<br /><br />Why Are There So Few Distressed Properties For Sale
For those readers who are fairly new to Tallahassee, the number of distressed properties for sale is pretty much "back to normal" for Tallahassee. The huge numbers seen in recent years were highly unusual for Tallahassee, so having just a handful or so is pretty much what I saw for the first 15 years of my career.
When the market tanked in 2006, home values fell so far that all the equity in the market went away. Prior to that, if a homeowner got behind on their mortgage payments, they could usually sell the house and pay-off all the debt because the house had gone up in value since it was purchased.
But the huge loss of values left property owners unable to sell for what was owed their homes. This meant distressed properties really had to be foreclosed upon (or sold short with lender approval). Those were unusual and different times.
Homes last year appreciated 9.38% and this year's appreciation rate has accelerated. People who purchase even two years ago have ample equity to satisfy existing liens.
On top of the rising equity, we see the declining inventory of homes for sale, so even a big rush of distressed properties would not bring down home prices. Demand is still far ahead of today's historic low inventory levels.
We should expect to find distressed homes as few and far between for the foreseeable future.2021-03-04T03:59:00-07:002021-07-18T10:20:07-07:00Joe Manausatag:manausa.com,2012-09-20:10176Can You Believe There Are Only 24 Foreclosure Homes For Sale?<a href="https://www.manausa.com/property/507-south-ride-tallahassee-fl-32303/pid-13323216/?tlid=20fcfa86c8ce4046aacacda0556150e8"><img src="https://assets.site-static.com/userfiles/663/image/24-foreclosure-homes-for-sale.jpg" width="880" height="587" alt="Take a look at the limited supply of foreclosures and short sales for sale in Tallahassee" title="Foreclosures And Short Sales Tallahassee FL" class="img_box_center" /></a>It wasn't so long ago that foreclosures were choking the inventory of homes for sale, making it very difficult for arms-length home sellers to get their homes sold at a reasonable price.
But times do change.
Take a look at the limited supply of foreclosures for sale in Tallahassee (and this <a href="https://www.manausa.com/property/507-south-ride-tallahassee-fl-32303/pid-13323216/?tlid=20fcfa86c8ce4046aacacda0556150e8">1 great short sale</a>) and you will realize how well the market has recovered.
Foreclosure Homes For Sale In Tallahassee<br /><br />Distressed Home Sales Report
In order to see how significantly the market for distressed homes has changed, I've assembled the following graph which segments distressed home sales from normal "arms-length" home sales.
<img src="https://assets.site-static.com/userfiles/663/image/distressed-home-sales-report.png" width="880" height="648" alt="Graph of distressed home sales over the past ten years" title="Distressed Home Sales Report" class="img_box_center" />
In the graph above, arms-length home sales are plotted in green while distressed home sales are in red, and both are measured against the left vertical axes.
The black line provides a great perspective on the change in the market. It measures the percentage of distressed home sales to all home sales each year (from January through March), and the decline is powerful.
In 2011, more than 2 out of every 5 homes sold were done under distress (short sale, foreclosure, etc.), while today roughly 2 out of every 100 homes sold is a distressed sale. I suspect we're back to a historic norm.<br /><br />Should You Buy A Distressed Home?
When we first start working with a buyer, it is not uncommon for the conversation to come around to this type of statement from a buyer:
"I want a good deal, like a foreclosure or short sale!"
This common thought is often perpetuated by advertisements in all industries, not just real estate, and many people think that distressed properties are potential home runs. And sometimes they are.
But more than likely, the typical buyer is not the best fit for distressed homes. For example, if you have a specific time frame for which you need to move, then many distressed home sellers are not going to necessarily be able to accommodate any inflexibility on your part.
It is common for short sales to drag out for months or even years, and sometimes closings of foreclosures have significant delays.
Another thing to think about is the condition of the property. I can't tell you how many times I've seen a buyer spend $250K for a home that needs $50K worth of work to be valued at $300K. They think they are buying at a discount but instead are just buying work.
Of course, there are times when the right buyer should consider distressed property. My best advice, focus on the dirt below the home. If the land is in an awesome location and is high and dry, there is great potential.
For example, <a href="https://www.manausa.com/property/507-south-ride-tallahassee-fl-32303/pid-13323216/?tlid=20fcfa86c8ce4046aacacda0556150e8" title="Tallahassee Short Sale">here is a home</a> that somebody is going to buy, spend some money to clean it up, and then end up with 6 figures of equity.
Of course, they will be jerked around by the sellers' lender, will not be able to close exactly when they want (and maybe not even where they want), but if they can stomach the inconveniences, they will look back on the process with a smile.
If you are highly flexible with your timeframes, come in and ask us to put together a great target list to help you discover some extra equity when you purchase your next home.2020-03-16T02:53:00-07:002020-03-16T02:52:06-07:00Joe Manausatag:manausa.com,2012-09-20:5776Can You Find The Great Deal Among The Nine Remaining Short Sales In Tallahassee?Back in the darkest days of the housing market collapse, you could find short sales in Tallahassee at amazingly low prices.Today, there are only nine that are available, and one is a downright steal!Current Short Sales In TallahasseeShort Sales<br /><br />What Kind Of Short Sales Exist In Tallahassee?
<a href="https://www.manausa.com/listing/281936-1713-sharon-road-tallahassee-fl-32303/" target="_blank"><img class=" img_box_right" title="Short Sale In Tallahassee" src="https://www.manausa.com/uploads/agent-1/short-sale-tallahassee.png" alt="Current Short Sales In Tallahassee" width="380" height="253" /></a>There are nine short sales actively marketed for sale and not under contract right now, and they range in value from $115,000 to $650,000.
While I can't predict which one will blow you away, I can say that when you can buy an <a href="https://www.manausa.com/listing/281936-1713-sharon-road-tallahassee-fl-32303/" target="_blank">all-brick four bedroom home</a> on a third of an acre of land (in-town) for under $150,000, perhaps you should be "blown away!"
What Is A Short Sale?
Prior to the collapse of the housing market in 2006, I had never heard the term "short sale." While I am sure that it existed, my firm just did not spend that much time with <a href="https://www.manausa.com/distressed-property/">distressed property</a>.
All of that changed though. By 2011, 1 in every 3 home sales occurred in a distressed situation, and half of those were all short sales (meaning 1 in every 6 homes sold in 2011 was a short sale!).
So what actually does "short sale" mean?
A short sale is a situation where a home is being marketed at a price that will fall short of the existing liens against the <a href="https://www.manausa.com/" target="_blank">home</a>. For example, a home that is being sold at $250K that has an existing loan of $350K. The "short" in short sale means that the seller is hoping to sell it for less than is owed with the expectation that the bank will approve the sale.
Buyer Risks During Short Sales
You should not go about buying a short sale in Tallahassee without some seriously experienced assistance. It is EASY to get a short sale under contract, even at a price that will make you feel like you have stolen it.
But getting that super-low priced home to closing is an altogether different story. Why?
Because the people at the banks that are in the position to approve or disapprove of your contract are not stupid.
They have a rough idea of the value of the <a href="https://www.manausa.com/idx/search-form/" target="_blank">property</a>, so you need your home buying specialist to "sell" the bank on your deal, and that takes experience and finesse. Knowing the RIGHT price to pay for a particular short sale is the difference between success and failure.
Also, while awaiting a response from the bank, you might find yourself paying for different third-party services (like home inspections) if your contract is prepared favorably for the bank (rather than for you or the home seller). Since short sales require at least one 3rd party approval, you need to know that time frames for acceptance and closing will not jive with traditional norms.
This means that somebody buying a short sale has to have flexibility in their time line for buying. If you are in a lease that requires you to leave a home at a certain date, you better have a "Plan B" or you might find yourself in a hotel for a few weeks or even months. Make sure you speak with your home buying specialist specifically about short sale time frames before you choose to pursue buying one.
How To Buy A Short Sale
The key is to first select the real estate buyer's agent that can best help you navigate the smartest process for buying a short sale in Tallahassee. Don't start by selecting a home and making an offer with the agent that you bump in to, rather pick somebody that will get you the best deal and ensure that you do not lose money along the way (and of course, make sure the seller pays for your agent's service).
If you are interested in pursuing a short sale, we would love to interview for the job of being your buyer's agent. Simply <a href="https://www.manausa.com/blog/drop-joe-a-note/">drop me a note</a> and we'll be in touch right away.
<img class=" img_box_center" title="5 Star Real Estate Agent" src="https://www.manausa.com/uploads/agent-1/What-They-Say-About-Joe-Manausa-Real-Estate.jpg" alt="The past customers of Joe Manausa Real Estate are giving them 5-star reviews" width="400" height="333" />
Is Joe Manausa Real Estate The Right Agent For You?
Take a look at what our customers have to say, they are VERY HAPPY with the service they received and the homes that they purchased.<br /><br />Related Links<a href="https://www.manausa.com/blog/the-last-of-the-low-cost-money/" target="_blank">going, going, GONE! Don't Miss Your Last Chance For Low Cost Money</a><a href="https://www.manausa.com/blog/listings-tallahassee-mls-really-dont-exist/" target="_blank">172 Listings In The Tallahassee MLS Really Don't Exist</a><a href="https://www.manausa.com/blog/midtown-tallahassee-under-300k/" target="_blank">SHOCKING: 33 Homes For Sale UNDER $300K in Midtown Tallahassee</a>2017-08-31T04:49:00-07:002017-09-27T07:38:03-07:00Joe Manausatag:manausa.com,2012-09-20:5132The Ultimate Tallahassee Foreclosures Report August 2016During the first 15 years of my career, we saw so few foreclosures in Tallahassee that I did not really bother tracking them at all.Our stable economy and consistent appreciation had traditionally been the perfect recipe for keeping distressed properties from our normal offering of homes for sale. But the collapse of the housing market in 2006 changed all that.Current State Of The Tallahassee Foreclosure Market
If you did not see our recent <a href="https://help.manausa.com/?smd_process_download=1&download_id=748" target="_blank">Weekly Special Report</a>, you might want to give it a quick review. It's only one page and it provides some insight on the formation of new foreclosures in Tallahassee.
Today's report compares new lis pendens filings (the start of the foreclosure process) with foreclosure sales (the ultimate end of the foreclosure process).
If you came here hoping to see foreclosure homes for sale and do not really care so much about the distressed properties market condition, you can click on any of the following links to find all of the distressed properties in Tallahassee.
<a href="https://www.manausa.com/short-sale/" target="_blank">Short Sale Homes For Sale</a>
<a href="https://www.manausa.com/blog/tallahassee-short-sales/" target="_blank">Foreclosure Homes For Sale</a>
<a href="https://www.manausa.com/bank-owned-properties/" target="_blank">Bank Owned (REO) Homes For Sale</a>
<a href="https://www.manausa.com/distressed-property/" target="_blank">Distressed Homes For Sale (all of the above)</a>
<a href="https://www.manausa.com/arms-length-property/" target="_blank">Arms Length Homes For Sale (none of the above)</a>
Foreclosure Report
Our first foreclosures graph below shows the number of foreclosure sales that have occurred each month, while the yellow line tracks the average number of foreclosure sales each month for the past year.
<img class=" img_box_center" title="Status Of Foreclosures In Tallahassee, Florida" src="https://www.manausa.com/uploads/agent-1/tallahassee-foreclosures-status-aug-2016.png" alt="Tallahassee Foreclosures Status Report August 2016" width="880" height="587" />The peak of the foreclosure sales market occurred a little more than two years ago, but the number of foreclosed homes have been falling off fast since that time. Currently, Tallahassee is recording about 40 foreclosure sales each month, and that number is still falling (though the rate is slowing).
Foreclosure Sales Versus Lis Pendens Filings
This next graph compares the number of foreclosure sales each month with the number of new foreclosures filed (lis pendens).
The green lines show the total number of lis pendens filed for the past year, while the red columns record the number of foreclosure sales, both are measured against the left vertical axis.
The ratio of foreclosure sales to new filings is shown as a blue line and recorded on the right vertical axis.
<img class=" img_box_center" title="Tallahassee Foreclosures and Lis Pendens Filings" src="https://www.manausa.com/uploads/agent-1/tallahassee-foreclosures-update-august-2016.png" alt="Tallahassee Foreclosures and Lis Pendens Filings August 2016" width="880" height="587" />
This graph provides a lot of good information about the current state of the <a href="https://www.manausa.com/distressed-property/" target="_blank">distressed properties</a> market in Tallahassee. Here's what we can observe:
The annual number of lis pendens filed is falling
The annual number of foreclosure sales is falling
The ratio of sales to filings is falling, which we will explain in detail below
Distressed Home Sellers Have More Options (Again)
If you track the blue line in the graph above, you can see that at the beginning of the housing market recovery in 2008, only 14% of lis pendens resulted in a foreclosure sale. That means roughly 86% of people who were served with a notice of foreclosure were able to do something other than lose the house to foreclosure.
Historically, people who got behind on their mortgage simply sold their homes and collected the equity. Our market typically appreciated 3.5% per year, so foreclosure sales were rarely needed as a remedy to loan defaults.
But the collapse of the market brought about significant declines in home values, and most people lost more equity than their homes even possessed, thus the number of <a href="https://help.manausa.com/should-i-short-sale-my-home-2/" target="_blank">solutions available to distressed home sellers</a> was reduced to short sales and foreclosures.
Even through 2013, short sales were the solution of choice for most sellers, as it had (and still has) a far softer impact on the homeowner's credit than does a foreclosure.
But the scale of the collapse was so large that banks could not respond fast enough and many homes ended up going to a foreclosure sale.
By late 2014, the number of foreclosure sales exceeded the number of new lis pendens filings, and we did not see that reverse until early this year.
Home values are on the rise again, so struggling homeowners who can hold-on might very well regain an ability to sell the home and completely satisfy all debt on their properties. I suspect 2016 might be the last year of the <a href="https://www.manausa.com/blog/mortgage-forgiveness-debt-relief-2016-short-sales/" target="_blank">Mortgage Debt Forgiveness Act</a> and perhaps short sales will go the way of the <a href="https://en.wikipedia.org/wiki/Dodo" target="_blank">Dodo</a>.
The Future Of Tallahassee Foreclosures
The distressed properties market in Tallahassee still is a fairly large segment of all home sales with roughly 14% of homes sold being bank owned properties, short sales, pre-foreclosures, etc.
The segment will continue to decline, but we will not see them disappear for several more years (disappear = fewer than 5% of the market).
Many of the loan work-out programs were solutions with a time span of 3 to 7 years. That means somebody who did a work-out on their loan in 2012 might be facing their problem again as late as 2019, so expect to see the falling trends in the graphs above to begin to decline at a much slower rate.
All in all, the distressed property market is receding, and that means arms-length home sellers can expect to see home values return. All the time we've been going through the housing market recovery, several important trends were occurring that lead us to expect rapidly rising values in the years to come:
The population in Tallahassee is growing, thus we will need additional housing units
The cost to build new homes has been rising, driven by rising minimum wage and other factors
The availability of developed lots is thinning and the cost to develop new lots is "through the roof."
Ultimately, when more homes are needed in the coming years, they will be (and currently are) so expensive that they will pull existing home values higher.<br /><br />Related Links<a href="https://www.manausa.com/blog/borrowing-after-bankruptcy-and-other-financial-setbacks/" target="_blank">Tips For Homebuyers: Borrowing After Financial Setbacks</a><a href="https://www.manausa.com/blog/distressed-homes-for-sale-northeast-tallahassee/" target="_blank">Here Are The Few Remaining Distressed Homes For Sale In Northeast Tallahassee</a><a href="https://www.manausa.com/blog/asking-price-short-sale/" target="_blank">Don’t Be Fooled By The Asking Price On That Short Sale</a>2016-08-23T04:52:00-07:002017-07-01T05:38:00-07:00Joe Manausatag:manausa.com,2012-09-20:5045Is The Tallahassee Foreclosure Market Finally Returning To Normal?If you happen to have been following our Tallahassee Foreclosure Reports over the years, then you likely wonder why it has been a while since we posted our last report.Well, the Tallahassee real estate market has been improving.With roughly one in every six homes sold in Tallahassee tagged as "distressed," we cannot say that the housing market is back to normal. But the improvement is dramatic.
Take a look at three graphs that explain the current situation, and then review all current <a href="https://www.manausa.com/distressed-property/" target="_blank">distressed properties for sale in Tallahassee</a> at the bottom of this report.
Tallahassee Foreclosure Reports
Our past <a href="https://www.manausa.com/blog/category/foreclosures/" target="_blank">foreclosure reports</a> gave lists of homes that had been served with foreclosure documents. We showed these as the ratio of non-performing loans to performing loans in Tallahassee was very high.
As things are now returning towards the old normal, we have created a summary of distressed property activities.
The first graph in our report plots the number of lis pendens filed each month (blue columns) and then records the one-year trend (average number of lis pendens per month, shown in yellow).
<img class=" img_box_center" title="Lis Pendens Filed In Tallahassee Florida" src="https://www.manausa.com/uploads/agent-1/Lis Pendens Tallahassee.png" alt="Graph of Lis Pendens Filed In Tallahassee Florida" width="600" height="401" />
Currently, monthly filings have dropped below 70 per month, a 10+ year record low. But is this good?
Sure, the fact that new filings are dropping is very good. But this is still a very high number and it suggests about 1 in every 6 homes sold (1 in every 5 that are financed) ends up in trouble with the lender.
Foreclosure Sales In Tallahassee
Our next graph is created the same way as was the prior one, with the exception that we are tracking final foreclosure sales as opposed to lis pendens filings.
<img class=" img_box_center" title="Tallahassee Foreclosures April 2016" src="https://www.manausa.com/uploads/agent-1/Tallahassee Foreclosures.png" alt="Graph Of Tallahassee Foreclosures Over Time" width="600" height="401" />
Unlike lis pendens, we have not established a ten year low with foreclosure sales. But things are improving here as well.
The number of foreclosure sales each month is now consistent with the numbers recorded about four years ago.
Distressed Property Overview
Our final graph puts lis pendens and foreclosures in one picture, and then calculates the percentage of filings that end up as full-blown foreclosure sales.
<img class=" img_box_center" title="Distressed Home Sales Tallahassee" src="https://www.manausa.com/uploads/agent-1/Distressed Home Sales Tallahassee.png" alt="Graph Of The Total Number Of Distressed Home Sales In Tallahassee, Florida" width="600" height="401" />
Right now, new filings and final sales are posting very similar numbers, and the ratio of sales to filings is still very high. This is partly due to math (a declining denominator is going to produce a higher ratio), and partly due to the fact that traditional corrective actions are not working.
In the past, if a property owner got behind on mortgage payments, there was typically equity in the home to motivate a swift action by the property owner. But with values eroded by the collapse of the Tallahassee real estate market, the most viable solution for upside-down homeowners is a <a href="https://www.manausa.com/short-sale/" target="_blank">short sale</a> or a foreclosure.
Again, the trends for lis pendens and foreclosures are each declining, thus we should expect continued improvement for homeowners in Tallahassee. Today's report is proof-positive of improvement.
Finally, the following distressed homes listed for sale in Tallahassee demonstrate improvement as well. At the writing of this report, there are only 63 properties listed below. Had we produced this report in 2012, then number would have been several hundred!Distressed Properties<br /><br />I hope you have enjoyed our Tallahassee Foreclosure Report for April 2016. If you have any questions not addressed in this post, feel free to leave a comment/question below or you can always <a href="https://www.manausa.com/blog/drop-joe-a-note/">drop me a note</a> anytime.<br /><br />Related Links<a href="https://www.manausa.com/blog/how-to-buy-a-home-in-pre-foreclosure/" target="_blank">How to buy a home in pre-foreclosure</a><a href="https://www.manausa.com/blog/how-to-be-a-cash-buyer-with-no-money/" target="_blank">How To Be A Cash Buyer With No Money Of Your Own</a><a href="https://www.manausa.com/blog/find-tallahassee-foreclosures/" target="_blank">The Best Way To Find Tallahassee Foreclosures</a>2016-04-19T05:44:00-07:002017-07-01T05:56:19-07:00Joe Manausatag:manausa.com,2012-09-20:4913Foreclosures In Tallahassee - Good News, Bad NewsWhen we look at the number of <a href="https://www.manausa.com/blog/tallahassee-short-sales/" target="_blank">foreclosures in Tallahassee</a>, it is very easy to see the glass as half full, or half empty.On the one hand, these distressed home sales have fallen to the lowest level recorded in the past 7 years, yet on the other hand, they are still a very large segment of the Tallahassee real estate market.Currently, more than one in five of every closed home sales in Tallahassee continues to come from a distressed home seller, and the current rate of new foreclosure activity remains at an alarmingly high percentage of all real estate transactions.Foreclosures In Tallahassee There are two ways we track foreclosures in Tallahassee. First, we measure the number of new lis pendens filed each month (a lis pendens filing is the initial step in the foreclosure process). The graph below shows the total number of filings each month. <img src="https://www.manausa.com/uploads/agent-1/Lis Pendens In Tallahassee.PNG" alt="Lis Pendens In Tallahassee" width="600" height="434" class="img_box_center" /> The blue bars show the number of monthly lis pendens filings, and the yellow line shows the one-year average of monthly filings. Currently, the trend has fallen to 74 lis pendens filed each month. Tallahassee Foreclosure Sales While lis pendens are the start of the foreclosure process, not every one filed becomes a foreclosure sale. The graph below shows the total number of foreclosure sales each month. <img src="https://www.manausa.com/uploads/agent-1/Distressed In Tallahassee.PNG" alt="Foreclosures In Tallahassee" width="600" height="438" class="img_box_center" /> Just as in the prior graph, the bars measure the monthly number of foreclosure sales in Tallahassee, while the yellow line shows the one-year trend (monthly average). Currently, Leon County has averaged 74 foreclosure sales each month over the past year. Distressed Property Status In Tallahassee When we combine the information from each of the top two graphs, we generate the one below. <img src="https://www.manausa.com/uploads/agent-1/Tallahassee Foreclosure Situation.PNG" alt="Tallahassee Foreclosure Situation" width="597" height="435" class="img_box_center" /> The lis pendens are shown in green, while foreclosures are shown in red (both annualized and recorded on the left vertical axis). The ratio between the two is shown in blue and recorded on the right vertical axis. Currently, there is one foreclosure sale for every new lis pendens filed. Contrast that with the far left of the graph, when roughly 12% of lis pendens resulted in a foreclosure sale. This means that "back then", only 1 of every 8 home sellers that were served a lis pendens actually lost their home to a foreclosure sale. 7 of every 8 were able to avoid foreclosure with one of the following methods: get current with their mortgage payments refinance the home with an alternative program sell the home and recover the equity at closing sell the home via a short sale Each of these methods helped the homeowner avoid being foreclosed upon. But times change. The <a href="https://www.manausa.com/distressed-property/">mass of distressed properties</a> that flooded the Tallahassee real estate market, coupled with declining home values which extinguished home equity, resulted in a market where foreclosure was a viable option for many people who had fallen behind on their mortgage payments. Current Foreclosure Situation In Tallahassee You might wonder how the ratio of foreclosures to lis pendens filings exceeded 100% in the graph above. That is actually a positive sign. Lis pendens have been generally on the decline since October of 2012, and by December of 2013, we first saw the annual number of foreclosure sales exceed the annual number of new lis pendens filed. The first major step in our distressed property correction. Currently, the number of new lis pendens being filed is at levels far lower than what we have reported since the beginning of 2009, but these levels are still too high. Perhaps the easiest way to demonstrate this is to compare new filings with new sales. <img src="https://www.manausa.com/uploads/agent-1/Lis Pendens Filings In Tallahassee Florida.PNG" alt="Lis Pendens Filings In Tallahassee Florida" width="600" height="438" class="img_box_center" /> This graph simply compares two un-related events, but the relationship is still important to note. For every 5 new home sales, a lender is filing a lis pendens in Leon County. One could simply say that currently one in every five home loans is "going bad." Obviously, this trend needs to continue downwards. So the glass being half-full shows us that all distressed property trends are showing great improvement in 2015, while the half-empty glass shows that distressed actions are still far higher than a healthy housing market would report. If you would like keep up to date with the recovering housing market in Tallahassee, simply <a href="https://www.manausa.com/blog/subscribe-tallahassee-newsletter/">subscribe to the FREE Tallahassee Real Estate Newsletter</a> below and you'll get updates delivered to your email inbox. <br /><br />Related Links<a href="https://www.manausa.com/blog/realtors-home-valuation-process/" target="_blank">Do Realtors All Use The Same Home Valuation Process?</a><a href="https://www.manausa.com/blog/year-over-year-home-sales-continued-growth/" target="_blank">Year Over Year Home Sales Show Continued Growth</a><a href="https://www.manausa.com/blog/homes-for-sale-in-tallahassee-today/" target="_blank">Homes For Sale In Tallahassee Today Have Less Competition</a>2015-10-23T05:55:00-07:002017-07-01T04:35:51-07:00Joe Manausatag:manausa.com,2012-09-20:4878Fewer Foreclosures In Tallahassee Residential Real Estate MarketIf you are interested in purchasing residential real estate in Tallahassee, you find that more than one in every five homes for sale is <a href="https://www.manausa.com/distressed-property/" target="_blank">listed as a distressed property</a>.
In the past (meaning prior to the housing market collapse and going back to caveman times), the distressed property market was a very small niche of the homes for sale in Tallahassee. Why? Because Tallahassee sustained a very consistent appreciation rate over the years, and there was relatively low speculative building here.
This resulted in a market where home sellers would typically have equity, so people who had a bad economic event occur could most often sell their homes and walk away with some cash.
But today's report will show that we are still far away from "the good old days" and that we still have a lot of <a href="https://www.manausa.com/blog/tallahassee-short-sales/" target="_blank">foreclosures</a>, <a href="https://www.manausa.com/short-sale/" target="_blank">pre-foreclosures</a>, <a href="https://www.manausa.com/bank-owned-properties/" target="_blank">bank owned properties</a>, and <a href="https://www.manausa.com/short-sale/" target="_blank">short sales</a> that still need to be sold in Tallahassee.
Tallahassee Foreclosures
Overall, the trend for Tallahassee foreclosures is positive. As we see in the graph below, the total number of new foreclosure filings (green bars) each year is on the decline, as is the total number of foreclosure sales (red bars).
<img src="https://www.manausa.com/uploads/agent-1/Tallahassee Foreclosure Situation.PNG" alt="Tallahassee Foreclosure Situation" width="597" height="435" class="img_box_center" />
Additionally, we measure the ratio of foreclosure sales to lis pendens filings as a way of tracking the dissolution trend for distressed properties. Right now, due to a significant decline in new filings, the blue trend line shows greater than 100% of foreclosure sales to lis pendens filings.
Now contrast this to the far left side of the graph, back when roughly 14% of all lis pendens filed resulted in a foreclosure sale. I suspect the fact that more foreclosure filings result in an actual foreclosure sale is due to the "lost equity" in the market, meaning homeowners cannot sell their homes without doing a short sale or foreclosure.
This is why choosing the right agent when you are (or might be) needing to sell a home that is likely to have a larger mortgage than the property value is so important. We were recently hired to sell <a href="https://www.manausa.com/listing/260828-1526-belleau-wood-drive-tallahassee-fl-32308/" target="_blank">this short sale</a>. The previous real estate company tried to sell it for several months, yet we were able to get it under contract in merely one day. As many homeowners are now discovering, your window for selling a short sale is not great, as banks will likely foreclose upon you if you do not procure a buyer right away.
The Health Of Residential Real Estate Sales
The Tallahassee real estate market is getting healthier, but do not think for a second that we are healthy.
<img src="https://www.manausa.com/uploads/agent-1/Lis Penden Filings Tallahassee.PNG" alt="Lis Penden Filings Tallahassee" width="597" height="435" class="img_box_center" />
The graph above measures the ratio of new foreclosure filings with the total number of homes sold each month. While the new foreclosures are not directly related to the houses being sold at the same time, the ratio still gives us some insight on the number of failed mortgages as they relate to the residential real estate market activity each month.
Currently, this ratio stands at 22%. One way to interpret this is that for every 100 homes being sold today in Tallahassee, 22 end up being served a lis pendens (the start of the foreclosure process). Now the reality is that the lis pendens are being served on home purchases from months or years ago, but this ratio still has good value for insight into the residential real estate market.
First of all, it is the best we've seen since we began measuring this ratio in 2009, but it is still far higher than what one might expect to see. Do we really expect 1 in 5 homebuyers to default on their mortgage? I don't think so.
But the good news is that we can expect to see a continued decline in the number of foreclosures that hit the market in Tallahassee. So long as we continue to see fewer lis pendens, we will see few foreclosures as a result.
If you want to know more about how foreclosures and lis pendens filings in the residential real estate market are impacting the value of your home, simply <a href="https://www.manausa.com/blog/drop-joe-a-note/">drop me a note</a> and we will be in touch right away to schedule a time to help you.<br /><br />Related Links<a href="http://www.google.com/search?q=tallahassee+foreclosure+manausa" target="_blank">Tallahassee Foreclosure Reports</a><a href="https://www.manausa.com/blog/subscribe-tallahassee-newsletter/" target="_blank">Subscribe To The Tallahassee Real Estate Newsletter</a><a href="https://www.manausa.com/blog/tallahassee-short-sales/" target="_blank">Tallahassee Foreclosure Listings</a>2015-08-26T05:39:00-07:002017-06-29T06:11:36-07:00Joe Manausatag:manausa.com,2012-09-20:4820Tallahassee Foreclosure Report June 2015The number of distressed properties in Tallahassee is finally on a healthy decline, perhaps a sign that a healthy rate of <a href="https://www.manausa.com/blog/a-real-look-at-real-estate-appreciation-in-tallahassee/" target="_blank">real estate appreciation</a> will return.
In order to assess the distressed property market in Tallahassee, we must look at what has happened in the past, what is happening now, and what current trends indicate will be happening in the near future.
Our report includes an analysis of lis pendens filings through May 2015 (a lis pendens is usually filed as a start of the foreclosure process), all foreclosure sales through May, and a look at the ratio of lis pendens that ultimately convert into a foreclosure sale.
Lis Pendens In Tallahassee
Our first graph is a monthly measurement of lis pendens filed in Leon County, Florida.
The number of filings each month is shown in blue, while the one-year average (trend) of these filings is represented by the yellow line.
The good (great) news is that we keep seeing the trend decline. In October of 2010, the trend exceeded 225 lis pendens filed each month whereas today that trend is down to 75 filings per month. That is a strong decline of 67% in less than five years.
<img src="https://www.manausa.com/uploads/agent-1/Lis Pendens Tallahassee.PNG" alt="Lis Pendens Tallahassee Florida" width="608" height="444" class="img_box_center" />
We are not out of the woods yet though. The 75 filings per month still means that for every four homes sold, one home is served with "foreclosure papers."
The following is a list of short sales currently on the market, and it is likely many of these have been served with lis pendens as well.Short Sales<br /><br />Tallahassee Foreclosures
While the lis pendens is the beginning of the foreclosure process, a final sale at the Leon County Courthouse (online of course) is required for a "foreclosure" to ultimately occur.
<img src="https://www.manausa.com/uploads/agent-1/Tallahassee Foreclosures.PNG" alt="Tallahassee Foreclosures" width="609" height="446" class="img_box_center" />
In the graph above, both the lis pendens trend (green bars) and the foreclosure sale trend (red bars) are shown and measured on the left vertical axis.
The blue line measures the ratio of lis pendens that result in a foreclosure sale, and we are now seeing it stabilize above 100%.
This means that the number of lis pendens being filed every month is fewer than the foreclosure sales that occur. This is good, as it means we are clearing out the <a href="https://www.manausa.com/distressed-property/" target="_blank">distressed properties</a> that have been weighing down the Tallahassee real estate market.
Take a look at the blue line from left to right and you will see a significant change in how problem loans are being handled. Seven years ago, roughly one of every eight lis pendens resulted in a foreclosure sale. That means the homeowner had remedies (like selling the home for its equity and moving on), but lower home values over the past 8 years has made it so that a foreclosure sale is most often the only option.
When we see things return to normal (well fewer than 100 lis pendens filed per month), we'll likely see a healthy appreciation rate return as well.
The following list is the most recent foreclosures to enter the market.Bank Owned Properties<br /><br />I hope you have gained something of value from our June Foreclosure Report, feel free to <a href="https://www.manausa.com/blog/drop-joe-a-note/" target="_blank">drop me a note</a> if you have further questions that this did not address.2015-06-17T05:49:00-07:002017-07-01T03:11:41-07:00Joe Manausatag:manausa.com,2012-09-20:4785The Makeup Of Distressed Home Sales Is ChangingDistressed home sales still represent a thriving segment of the Tallahassee real estate market, but there is a positive trend among troubled home sellers that is worth mentioning.
While 28% of the closed home sales in Tallahassee thus far in 2015 have been <a href="https://www.manausa.com/short-sale/" target="_blank">short sales</a>, <a href="https://www.manausa.com/blog/tallahassee-short-sales/" target="_blank">foreclosures, pre-foreclosures</a>, and <a href="https://www.manausa.com/bank-owned-properties/" target="_blank">bank owned properties</a>, only a small percentage of those were short sales.
Part of the reason that we are seeing a decline in short sales is due to the termination of the Mortgage Debt Forgiveness Act, under which any debt forgiven in a short sale is not counted as income for homeowners whom banks allowed to sell their homes for less than the amount of their mortgage. This has not been extended for short sales conducted in 2015, thus the motivation for upside-down homeowners to conduct a short sale (versus allowing a foreclosure by the lender) is greatly reduced.
The primary reason for the reduction in short sales (I believe) is that the majority of non-performing loans in Tallahassee are old and established, and thus they are problems now being handled by lenders. These are sellers who either tried and failed to do a short sale or declined to do one altogether.
<img src="/images/blogteaserimgs/388932750.PNG" alt="Distressed Home Sales" width="600" height="488" class="img_box_center" />
In the graph above, all closed distressed home sales through April 25, 2015 are divided into two separate groups. The blue columns measure the number of short sales through April each year, while the red columns measure the number of non-short sale distressed home sales, and both are recorded on the left vertical axis. (Note: All data is year to date through April for 2010-2014, but 2015 is only through April 25).
The ratio of short sales to all distressed sales is shown as a blue line and measured on the right vertical axis.
I think we can conclude from this graph that the perceived value by homeowners in doing a short sale is nearly gone.<br /><br />I hope you have gained insight into the ever-changing distressed home sales market in Tallahassee. If you questions or further insights that you would like to share, simply <a href="https://www.manausa.com/blog/drop-joe-a-note/" target="_blank">drop me a note</a> and we will be in touch with you promptly.<br /><br />Distressed Homes For Sale
The following listings are the distressed homes for sale in Tallahassee; the complete list can be seen by clicking through to the property search tool.
Distressed Properties2015-04-27T05:34:00-07:002019-09-02T08:28:25-07:00Joe Manausatag:manausa.com,2012-09-20:4740Distressed Home Sales Have Not Gone AwayEven though the Tallahassee real estate market recovery made a turn for the better two years ago, we are still dealing with a large number of <a title="Distressed Property List Tallahassee Florida" href="https://www.manausa.com/distressed-property/" target="_blank">distressed homes for sale</a> that must be sold.
Short sales, foreclosures, pre-foreclosures, REO properties all still exist in abundance, and these distressed properties represent competition to the arms length home sellers who are ready to make a move.
So if you are thinking about selling a home in Tallahassee, make sure the listing agents that you interview are able to walk you though an analysis of the competition that you will face so that you can market your property accordingly.
Distressed Home Sales Report
The good news is that while 1 in every 3 homes sold in Tallahassee is under "distressed" conditions, this is the lowest ratio of distressed homes sold in Tallahassee since 2010.
Additionally, due to the conclusion of the <a title="will they extend the short sale tax exemption for 2015?" href="https://www.manausa.com/blog/mortgage-forgiveness-debt-relief-act-extension/" target="_blank">Mortgage Forgiveness Debt Relief Act and Debt Cancellation</a>, we are seeing short sales just about disappear from the market.
In the real estate graph below, we see the distressed home sales each year through February broken down into two groups: short sales (blue) and non-short sales (red). The blue line measures the ratio of short sales to all distressed home sales.
<img class=" img_box_center" src="https://www.manausa.com/uploads/imagefiles/Distressed-Home-Sales-Tallahassee.png" alt="Distressed Home Sales Tallahassee" width="493" height="435" />
Currently, only 6% of all distressed homes sold this year have been short sales, and whether or not they decide to <a title="Mortgage forgiveness extension" href="https://www.manausa.com/blog/mortgage-forgiveness-debt-relief-act-extension/" target="_blank">extend the Mortgage Forgiveness Debt Relief Act</a> for all of 2015, we will likely see this part of the housing market recede into history.
I worked for 15 years in the real estate brokerage industry without hearing the term "short sale," and I'm hoping that when normalcy returns that part of the housing market will be gone for good.
Selling A Home
If you are <a title="Sell home Tallahassee Florida" href="https://www.manausa.com/blog/home-sellers/" target="_blank">planning to sell a home</a>, make sure you take the time to understand how the inventory of distressed properties will impact the sale of your home.
There are several areas and price ranges in Tallahassee that will feel almost zero impact from this segment of the market, yet others still face a very active threat from distressed properties. The mix of your competition should impact the way that you should go about selling your home.
If you would like to know more about distressed homes in Tallahassee, just <a title="Contact Joe Manausa about distressed homes for sale in Tallahassee" href="https://www.manausa.com/blog/drop-joe-a-note/" target="_blank">drop me a note</a> and we can schedule a time to discuss your current needs and wants.2015-02-27T10:20:00-07:002017-06-30T21:19:04-07:00Joe Manausatag:manausa.com,2012-09-20:4706Where To Find Tallahassee Foreclosures In 2015Though we are still days away from releasing our Tallahassee Foreclosure Report, the data that we've compiled has allowed us to produce a forecast on where you can expect to <a title="List of Tallahassee foreclosures, short sales, and bank owned properties on the market and available for purchase" href="https://www.manausa.com/distressed-property/" target="_blank">find distressed properties</a> this year.
Many new homebuyers like to start by educating themselves on short sales, foreclosures and bank owned properties, and there is no better way to start this process than by looking at new lis pendens filings to identify the next wave of distressed properties that will likely hit the market.
Today's report identifies the most active areas in Tallahassee for new foreclosure filings and thus where we expect to see the sale of these <a title="Distressed Property Defined" href="https://www.manausa.com/blog/definition-of-distressed-property/" target="_blank">distressed properties</a> next year.
Tallahassee Foreclosures By Neighborhood
The following real estate graph shows the most active neighborhoods in Tallahassee for lis pendens filings during 2014.
<img class=" img_box_center" src="https://www.manausa.com/uploads/imagefiles/Tallahassee-Foreclosures.png" alt="Tallahassee Foreclosures" width="550" height="402" />
By way of review, a lis pendens is the legal notice from the lender to the borrower that initiates the foreclosure process, while a foreclosure sale is the ultimate result that occurs if no solution has been achieved by the borrower.
Historically, less than 15% of lis pendens resulted in a foreclosure sale because the property owner was able to fix the problem by either catching up on the loan payments, re-negotiating the loan terms, selling the property and keeping the equity, or short selling the property (rare).
But today, with the massive decline in home values, there is no equity (or even negative equity) in most of the properties with lis pendens filings, so the foreclosure sale is the most likely solution to the current situation.
With this in mind, it is likely that most of the lis pendens identified in this report will result in an available foreclosure property within the next few years.
Recent Distressed Listings
The following list shows recent distressed properties for sale in Tallahassee, and you can <a title="list of distressed properties in Tallahassee Florida" href="https://www.manausa.com/distressed-property/" target="_blank">view the full list here</a>.
[idx-listings linkid="377978" count="10" showlargerphotos="true"]
I hope our report on Tallahassee foreclosures was helpful, if you need more assistance on choosing wisely, just <a title="Contact Joe Manausa about Tallahassee Foreclosures" href="https://www.manausa.com/blog/drop-joe-a-note/" target="_blank">drop me a note</a> and we will be in contact shortly.2015-01-14T09:45:00-07:002017-07-01T04:29:17-07:00Joe Manausatag:manausa.com,2012-09-20:4695Buyers Will Find Fewer Distressed Properties In 2015If you are planning on buying a home in 2015, you should expect to see fewer <a title="Best buys in the Tallahassee real estate market" href="https://www.manausa.com/distressed-property/" target="_blank">distressed properties for sale</a> than the market has offered during the past five years.
As home values complete a second year of appreciation, more and more home sellers now have the equity to resolve the issues that were previously pushing past homeowners towards short sales and foreclosures.
So prepare for a market where the offerings are (for the most part) in better condition than what we've seen in the past few years and well-priced home sellers who are able to find multiple buyers for their homes.
New Inventory Reveals Fewer Distressed Properties
Each of the past few years has shown a consistent trend, where the ratio of distressed properties listed for sale in the <a title="Search the Tallahassee MLS for all property listings" href="https://www.manausa.com/idx/search-form/" target="_blank">Tallahassee MLS</a> rises to a peak at the end of December or within the first few days of January. But this year the trend ended sooner and lower.
<img class=" img_box_center" src="https://www.manausa.com/uploads/imagefiles/distressed-properties.png" alt="distressed properties" width="552" height="403" />
The real estate graph above shows a short term trend of two important measurements for new inventory.
The green bars show the 30 day trend (average) of the average list price of homes entering the market, while the gold line shows the 30 day trend of the percentage of new listings that are distressed. It is this gold line that reveals the important change.
At the end of 2012 (specifically 12/31/2012), 41% of the listings entering the market over the 30 previous days were distressed properties.
At the end of 2013 (specifically 1/2/2014), 39.5% of the listings entering the market over the 30 previous days were distressed properties.
At the end of 2014 (specifically 12/13/2014), 35.1% of the listings entering the market over the 30 previous days were distressed properties.
The peak came sooner and the ratio was significantly lower than the previous two years. So what does this mean?
I believe it is a sign of the market getting healthier.
During the first 15 years of my 23+ year career, I did not measure the ratio of distressed properties in the market, but I suspect it rarely reached as high as 5% of the new listings entering the market. Therefore, when all the dust finally settles from the housing market collapse of 8 years ago, I think the Tallahassee real estate market will return to these traditional levels.
We are still far from "normal," but the decline in new distressed properties is a very good sign for everybody who cares about the health and well being of the Tallahassee housing market.2014-12-31T09:18:00-07:002017-07-01T00:22:43-07:00Joe Manausatag:manausa.com,2012-09-20:4668Is This A Reemergence Of The Shadow Inventory In Real EstateLong-time readers of the Tallahassee real estate blog were introduced to the concept of the <a title="Real Estate Shadow Inventory Defined" href="https://www.manausa.com/blog/real-estate-shadow-inventory/" target="_blank">shadow inventory of homes</a> more than five years ago. A reader had asked me to explain what it was and whether or not Tallahassee was dealing with more than its fair share of homes that fit the description of "needing to be sold" yet not <a title="homes for sale in Tallahassee Florida" href="https://www.manausa.com/idx/results/" target="_blank">listed for sale in the Tallahassee MLS</a>. We explained that the real estate shadow inventory includes homeowners who are facing foreclosure, banks or lenders who have foreclosed on homes and now own them, homeowners waiting for the market to improve, and people who have failed to sell their home recently or in the past. So five years later, with the Tallahassee real estate market recording a slow, continuous rise in the number of homes selling every day, where do you think the shadow inventory of homes stands? The Shadow Inventory Of Homes Is Growing Again When the term "shadow inventory" is used in real estate, most often people are talking about properties held by lenders that are not visibly available for sale in the market. The reason that I have expanded this group to include all homes that need to be sold is because it represents pent-up supply that will be looking for an entry in the Tallahassee real estate market as soon as homeowners think they can procure a sale at a price that solves their problem(s). This means that as home values rise, we will see more of these homeowners in the shadows reemerge to test the market again. This is good, it is a sign that the market is healing. The real estate graph below measures the number of homes leaving the market without selling (expired listings, withdrawn listings, and canceled listings) which do not immediately re-list their home for sale. <img class=" img_box_center" src="https://www.manausa.com/uploads/imagefiles/Shadow-Inventory-Of-Homes.png" alt="Shadow Inventory Of Homes" width="552" height="401" /> Clearly, there has been growth in this category. Some of the growth in the shadow inventory can be blamed on homeowners jumping the gun, re-entering the market at prices too high in the hopes of finally unloading their homes that they have wanted to sell for years. From 2009 through 2013, the one-year trend of daily failures fluctuated from 2 to 4 per day, but this year we've seen the number skyrocket to more than 5 home failures per day. While we are not prepared to identify the definitive reason for this recent rise, we can advise homeowners and home builders that this is a sign that the shadow inventory of homes is still large enough to satisfy demand for at least the next year. <br /><br />Real Estate Supply And Demand Remember, like any other market, real estate relies on the balance of supply and demand to determine the direction of values and the conditions for prosperous trade. If you are thinking of selling a home in Tallahassee, take the time to study real estate supply and demand for homes like the one that you own. Meet with a highly skilled market analyst to determine the likelihood of your home selling at a price that solves your problems. If you are a home builder wondering if now is the time to build speculatively, the same advice holds true. Study supply and demand for all areas and look for opportunities in the market. Right now they are few and far between, and it will be very risky to try to bring a product to market in the hopes that it will handle the breadth of the competition that is available (as well as the competition waiting in the shadows). If you would like to know more about how the shadow inventory of homes will impact your chances in the market, just <a title="Contact Joe Manausa about the shadow inventory of homes in Tallahassee" href="https://www.manausa.com/blog/drop-joe-a-note/">drop me a note</a> and we can arrange a time to review your home and its likely position in the Tallahassee real estate market.2014-11-25T08:48:00-07:002017-07-01T04:25:33-07:00Joe Manausatag:manausa.com,2012-09-20:4635What The Recent Foreclosure Report Means For Tallahassee HousingWith the end of another quarter of home sales in Tallahassee, we have just recently updated our reports on <a title="Foreclosures in Tallahassee Florida" href="https://www.manausa.com/blog/tallahassee-short-sales/" target="_blank">lis pendens filings</a> and foreclosure sales. The trend of foreclosure sales is soaring, an unsurprising result of the past lis pendens filings that have occurred. But a recent trend reversal on lis pendens filings is a cause for concern regarding the near future of home sales and values in Tallahassee. Tallahassee Foreclosure Report While it seems like bad news to hear that foreclosure sales in Tallahassee were up more than 80% versus this same month last year, the reality is that foreclosure sales are the end result of something that has already occurred. Specifically, foreclosure sales are not news, they are merely the future result of past lis pendens filings. We knew these foreclosure sales were impending, it is the new lis pendens that we monitor for real news in the distressed properties market. <img class=" img_box_center" src="https://www.manausa.com/uploads/imagefiles/Tallahassee-Foreclosure-Lis-Pendens.png" alt="Tallahassee Foreclosure Lis Pendens" width="551" height="403" /> In the foreclosure graph above, each column represents and entire year of data. In red, we see new lis pendens filings while foreclosure sales are shown in blue. Currently, there are more foreclosure sales than lis pendens filings, which suggests that the market is moving through a later stage of the distressed property process. As fewer and fewer lis pendens are filed, we should see the number of foreclosure sales finally start to decline as well. But recently, the number of lis pendens being filed each month began to rise again. This was a bit of a surprise, and it might mean that we are further from the conclusion of the housing market recovery than we first thought. To put this into perspective, we observed roughly 1,200 new lis pendens filed over the past year, a time in which there were fewer than 4,000 homes sold. Simply put, it means every time 3 homes are sold, one begins a new foreclosure process. This is not a healthy number! <br /><br />Why You Should Study New Lis Pendens Filings If you are happy in your home and do not plan to move, then I see no reason that you should worry about new lis pendens filings. They are going to happen and we won't be seeing them return to normal for another five years or so. But if you plan on moving in the next few years, a study of the distressed properties will give you an advantage when deciding when and where to make your move. Since we post a list of all lis pendens in Tallahassee each month, you don't have to spend much time to stay as informed as any real estate agent in your area. A knowledge of the foreclosures and lis pendens will give you and idea of weight of pricing pressure as a future seller, as well as an understanding of opportunities as a future home buyer. Knowledge is power, and it benefits you both when selling and during the <a title="What Happens When You Use The Wrong Home Buying Process" href="https://www.manausa.com/blog/what-happens-when-you-use-the-wrong-home-buying-process/" target="_blank">home buying process</a>. If you would like to start early preparation for your next move and explore lis pendens and foreclosures with a well-trained real estate agent, just <a title="Contact Joe Manausa about foreclosures and lis pendens in Tallahassee Florida" href="https://www.manausa.com/blog/drop-joe-a-note/">drop me a note</a> and we can schedule a time to begin your journey.2014-10-13T04:59:00-07:002017-06-29T05:54:23-07:00Joe Manausatag:manausa.com,2012-09-20:4595An Update On Short Sales And Foreclosures In TallahasseeWe like to keep a close watch on the inventory of distressed properties for sale in Tallahassee. It serves as an overall bellwether for the state of the Tallahassee real estate market, knowing that we have a lot of short sales and foreclosures that still must clear before our market can return to "normal."
Overall, we are starting to see a non-seasonal decline in the number of distressed properties that are entering the market. I suspect this is good news, though there is likely some pent-up supply of short sales with upside down homeowners waiting to see what happens with the <a title="Current status of the Mortgage Forgiveness Debt Relief Act" href="https://www.manausa.com/blog/mortgage-forgiveness-debt-relief-act-extension/" target="_blank">Mortgage Forgiveness Debt Relief Act</a>.
Rumor has it that this will be extended in October, retroactive to include all of 2014 and continuing through all of 2015. Regardless, the numbers are looking better right now.
Distressed Properties Update
The following real estate graph shows the short-term and long-term trends for distressed properties listed for sale in the Tallahassee MLS.
<img class=" img_box_center" src="https://www.manausa.com/uploads/imagefiles/Distressed-Homes-For-Sale-In-Tallahassee-Florida.png" alt="Distressed Homes For Sale In Tallahassee Florida" width="553" height="403" />
In the graph above, the black bars show the number of distressed properties listed each day. It is important to note that we are attempting to focus primarily on non-investment properties, so we are only looking at <a href="https://www.manausa.com/distressed-property/">distressed properties listed for sale priced above $100,000</a>.
The shortest trend is the red line, which measures the ratio of distressed properties to all properties listed for sale. Over the past 30 days, 22% of all listings were categorized as distressed properties.
The purple line shows the 90 day trend. Over the past quarter, 17% of all new listings were distressed. The blue line shows the 180 day trend, meaning over the last 6 months, 17% of the properties were distressed.
Finally, the orange line shows the one-year trend. Currently 18% of all properties listed over the past year were distressed. That's down about 1% from this time last year. Note how the orange line (the one-year trend) has hardly moved, falling and rising in a one to two percent range. That shows you just how consistent these listings have been streaming into the market.
The shorter term trends move around a good bit, suggesting there are seasonal times to expect to see a greater percentage of these properties. This is less likely due to distressed sellers, and more likely due to arms-length sellers becoming more active during the Spring and Summer months.
<a name="listings"></a>
Recent Distressed Property Listings
The following list shows the ten most recently listed distressed homes for sale in Tallahassee. It will be updated twice each day, so come back as often as you like to see the newest short sales and foreclosures on the market in Tallahassee.
[idx-listings linkid="339267" count="10" showlargerphotos="true"]
If you are still thinking about short selling your home, check out our <a title="Should you short sale your home?" href="https://www.manausa.com/blog/tallahassee-short-sales/" target="_blank">free short sale resource that you can download here</a>. It's more than 80 pages of information and contacts that will help you decide whether or not to short sale your home.
Of course, if you would like a FREE consultation about the risks and potential rewards of a short sale, just <a title="Contact Joe Manausa about short sale in Tallahassee" href="https://www.manausa.com/blog/drop-joe-a-note/" target="_blank">drop me a note</a> and we will schedule a time to meet with you and evaluate your home and your situation.2014-09-03T04:56:00-07:002017-07-01T04:28:52-07:00Joe Manausatag:manausa.com,2012-09-20:4580Is There A Conspiracy To Control Distressed Property?It appears that the surge of distressed property that entered the market in August of last year will be replicated in 2014, as the short-term trend of short sale and foreclosure listings is moving higher.
A conspiracy theorist might conclude that the large lenders holding the most <a href="https://www.manausa.com/distressed-property/">distressed property inventory</a> have withheld the bulk of their REO assets during the peak summer months in order to help real estate values recover, but I suspect they aren't that organized.
Take a look at the again-changing landscape for homebuyers and sellers alike, as more than 1 in every 5 new listings in the Tallahassee MLS is being marketed as "distressed."
Distressed Property Being Listed For Sale
Our first real estate graph measures the short term trend of new <a title="Best buy list for Tallahassee real estate" href="https://www.manausa.com/distressed-property/" target="_blank">distressed properties listed for sale in Tallahassee</a>.
The vertical green bars measured the average asking price for new listings over the past 30 days (left vertical axis), while the brown bar tracks the average ratio of distressed property listings compared with all new listings in Tallahassee (right vertical axis).
<img class=" img_box_center" src="https://www.manausa.com/uploads/imagefiles/distressed-listings-in-Tallahassee.png" alt="distressed listings in Tallahassee" width="550" height="400" />
Note how the ratio of distressed property listings is soaring higher, just as it did a year ago. Is this an organized effort by the banks to control the flow of foreclosures into the market, or is it rather a simple mathematical result that occurs as arms-length sellers begin the seasonal slowing as the school year approaches (meaning the bulk of "normal" listings occur from March through June). I suspect the latter is what we are really seeing.
Long Term Trend
When we shift from a 30 day trend to a longer one, we can see that the state of the Tallahassee real estate market has not changed much over the past year. The following graph shows the one-year trend of average list prices and the ratio of distressed property to the total market.
<img class=" img_box_center" src="https://www.manausa.com/uploads/imagefiles/tallahassee-real-estate-listings.png" alt="tallahassee real estate listings" width="551" height="402" />
I find it interesting that the percentage of listings being marketed as distressed properties has remained between 19% and 20% since September of last year. This graph showing one-year averages removes the seasonality that occurs throughout the year, and the only trend that we can truly spot over the long-haul is that the average asking price has come down a little over 2% over the past 11 months.
The really isn't any evidence of distressed properties going away, and I think we will continue to see a significant number of foreclosures in the Tallahassee real estate market for many more years.
<a name="listings"></a>
New Distressed Property Listed For Sale
The following list shows the most recent distressed properties put on the market in Tallahassee (priced over $100K).
[idx-listings linkid="339267" count="10" showlargerphotos="true"]
I hope you gained a better understanding of what is being listed for sale in Tallahassee. If you are planning on selling your home, let us help you analyze the market and decide upon your smartest entry point.
And if you are interested in buying a distressed property in Tallahassee, just <a title="Contact Joe Manausa about distressed property in Tallahassee" href="https://www.manausa.com/blog/drop-joe-a-note/" target="_blank">drop me a note</a> and we can schedule a time to help you acquire the right one at the right price, using our proprietary home buying process.2014-08-12T08:36:00-07:002017-06-30T21:04:05-07:00Joe Manausatag:manausa.com,2012-09-20:4557Which Tallahassee Subdivisions Should Expect The Most ForeclosuresIn case you missed the announcement this weekend, we just released our <a title="June 2014 Tallahassee Foreclosure Report" href="https://www.manausa.com/blog/tallahassee-short-sales/" target="_blank">foreclosure reports for the month of June</a>.
During the process of compiling all of the lis pendens filings for the report, I felt it would be a good time to create a graph showing the <a title="neighborhood information Tallahassee, FL" href="https://www.manausa.com/blog/category/tallahassee-neighborhoods/" target="_blank">Tallahassee subdivisions</a> where we should expect to find the most foreclosures in the coming year.
While many of the "usual suspects" are listed, there were a few surprises as well.
Tallahassee Subdivisions With The Most Foreclosures
The following real estate graph shows the Tallahassee neighborhoods with the most lis pendens filings over the past 12 months.
Most are not surprising, as this group for the most part mirrors the <a title="Buyers Flock To Top Selling Tallahassee Subdivisions" href="https://www.manausa.com/blog/buyers-flock-to-top-selling-tallahassee-subdivisions/" target="_blank">top selling neighborhoods</a> as well.
<img class=" img_box_center" src="https://www.manausa.com/uploads/imagefiles/Tallahassee-Subdivisions-With-Foreclosures1.png" alt="Tallahassee Subdivisions With Foreclosures" width="550" height="402" />
The are some popular neighborhoods notably absent from the list of new foreclosure filings.
<a title="Homes for sale in Bull Run Tallahassee Florida" href="https://www.manausa.com/bull-run/" target="_blank">Bull Run</a> is a top 5 selling neighborhood, yet it ranks tied for #87 with only 2 lis pendens filed in the past twelve months. Two other top ten neighborhoods, <a title="Summerbrooke Tallahassee homes for sale" href="https://www.manausa.com/summerbrooke/" target="_blank">Summerbrooke</a> and <a title="Arbor Hill listings in the Tallahassee MLS" href="https://www.manausa.com/arbor-hill/" target="_blank">Arbor Hill</a>, rank tied for #48 with only 3 lis pendens filed for each during the past year.
How To Use Lis Pendens Announcements
If you are not in any hurry to move, and you know where you want to live, you can use our weekly lis pendens reports to search for potential up-and-coming distressed properties. Recently, the following reports were filed:
<a title="Lis Pendens Filings For The Week Of June 7, 2014" href="https://www.manausa.com/blog/month/6-2014/" target="_blank">Lis Pendens For June 1 - June 7</a>
<a title="Lis Pendens Filings For The Week Of June 14, 2014" href="https://www.manausa.com/blog/month/6-2014/" target="_blank">Lis Pendens For June 8 - June 14</a>
<a title="Lis Pendens Filings For The Week Of June 21, 2014" href="https://www.manausa.com/blog/month/6-2014/" target="_blank">Lis Pendens For June 15 - June 21</a>
<a title="Lis Pendens Filings For The Week Of June 30, 2014" href="https://www.manausa.com/blog/month/6-2014/" target="_blank">Lis Pendens For June 22 - June 30</a>
If you want to know more about Tallahassee foreclosure trends, we also publish monthly summaries which include a list of all lis pendens filed for each respective month.
<a title="Tallahassee Lis Pendens Filed June 2014" href="https://www.manausa.com/blog/monthly-report-06-2014/" target="_blank">June Foreclosure Report</a>
<a title="Tallahassee Lis Pendens Filed May 2014" href="https://www.manausa.com/blog/monthly-report-05-2014/" target="_blank">May Foreclosure Report</a>
<a title="Tallahassee Lis Pendens Filed April 2014" href="https://www.manausa.com/blog/monthly-report-04-2014/" target="_blank">April Foreclosure Report</a>
And for all of our data lovers, we also compile quarterly and annual reports
<a title="Q2 Lis Pendens Filed in Tallahassee, Florida" href="https://www.manausa.com/blog/second-quarter-2014/" target="_blank">Tallahassee Foreclosure Report - 2nd Quarter 2014</a>
<a title="Q1 Lis Pendens Filings In Tallahassee, Florida" href="https://www.manausa.com/blog/first-quarter-2014/" target="_blank">Tallahassee Foreclosure Report - 1st Quarter 2014</a>
<a title="2013 Lis Pendens Filed in Tallahassee, Florida" href="https://www.manausa.com/blog/2013-foreclosure-report/" target="_blank">2013 Tallahassee Foreclosure Report</a>
So take the time to check out the distressed properties that will likely be entering the market over the next few years. These properties still represent more than a quarter of the inventory that is selling, so it's a great way to get a leg-up on your buying competition. Often times, these properties hit the market and sell in the first few hours, so knowing what to expect allows you to make a decisive move without having to make a panicked offer.
Of course, the best way to buy a foreclosure in Tallahassee is with an experienced buyer's agent. If you would like to start planning for buying a property below market, just <a title="Contact Joe Manausa about lis pendens and foreclosures in Tallahassee Florida" href="https://www.manausa.com/blog/drop-joe-a-note/">drop me a note</a> and we can schedule a time to start you on your way towards a successful purchase.2014-07-21T09:27:00-07:002017-07-01T06:13:15-07:00Joe Manausatag:manausa.com,2012-09-20:4546What's For Sale In Tallahassee<img src="https://assets.site-static.com/userfiles/663/image/whats-for-sale-in-tallahassee_1.png" width="880" height="597" />
If you have been thinking about <a title="Learn the smarter process for buying a home today" href="https://help.manausa.com/home-buying-for-smart-people-book/" target="_blank">buying a home</a> for more than just the past few months then it is likely you have noticed a big change in what's for sale in Tallahassee.
The inventory has been evolving from one glutted with <a href="https://www.manausa.com/distressed-property/">short sales, foreclosures, and bank owned properties</a> to a market filled with fewer homes and a declining inventory of distressed properties.
In other words, the Tallahassee real estate market is making its way back to "normal."
A Picture Of What's For Sale In Tallahassee
Long time readers of the <a title="real estate in Tallahassee Florida" href="https://www.manausa.com/blog/" target="_blank">Tallahassee Real Estate Blog</a> know that I believe in charts and graphs. They provide a picture of what is happening in the market, and knowledgeable users can gain an advantage when selling a home or buying a home by knowing more about their surroundings.
Today's real estate graph contains a simple breakdown of what's for sale in Tallahassee. It divides the market into 2 separate segments:
Distressed Properties - Short sales, foreclosures, and <a href="https://www.manausa.com/distressed-property/">bank owned properties</a> (shown in red below)
Arms Length Properties - <a href="https://www.manausa.com/distressed-property/">Homes being sold by equity owners</a> who are seeking full market value and do not need approval to sell from a third-party (shown in green below)
<img class=" img_box_center" src="https://www.manausa.com/uploads/imagefiles/Whats-for-sale-in-Tallahassee.png" alt="What's for sale in Tallahassee" width="550" height="400" />
Currently, the distressed properties "only" represent 25% of the <a title="all the houses listed for sale in Tallahassee Florida" href="https://www.manausa.com/idx/results/" target="_blank">current homes for sale in Tallahassee</a>. That is the lowest we've seen going back four years, and it appears to be a trend that is continuing lower.
Home Buying Opportunities
There will always be "deals" for homebuyers, but I think the properties that we have seen sold in recent years will always be remembered as <a title="Is Now The Best Time To Buy A Home?" href="https://www.manausa.com/blog/the-best-time-to-buy-a-home/" target="_blank">the best time to buy a home</a> in Tallahassee.
Even today, homes are selling at prices that are far below the level for which they could be rebuilt. This "discount to cost" does not mean much in a market glutted with too much inventory, but when we grow beyond the current supply, future supply will be produced at levels that far exceed "cost" today.
<a name="video"></a>
Why Replacement Cost Should Matter To Homebuyers
I produced this video several years ago to remind our local investors how to play it safe. It demonstrates a process to include a safety net when making a real estate investment decision.
<img class="wpevs-container aligncenter" src="https://www.manausa.com/uploads/imagefiles/placeholder.png?v=1" alt="PHNjcmlwdCB0eXBlPSJ0ZXh0L2phdmFzY3JpcHQiIHNyYz0iaHR0cDovL2pvZW1hbmF1c2EuZXZzdWl0ZS5jb20vcGxheWVyL2FHOTNMWEpsWVd3dFpYTjBZWFJsTFdsdWRtVnpkRzl5Y3kxMWMyVXRiV0Z5YTJWMExXTjVZMnhsY3kweExtMXdOQT09Lz9jb250YWluZXI9ZXZwLUdJNFFNVlpGN0ciPjwvc2NyaXB0PjxkaXYgaWQ9ImV2cC1HSTRRTVZaRjdHIiBkYXRhLXJvbGU9ImV2cC12aWRlbyIgZGF0YS1ldnAtaWQ9ImFHOTNMWEpsWVd3dFpYTjBZWFJsTFdsdWRtVnpkRzl5Y3kxMWMyVXRiV0Z5YTJWMExXTjVZMnhsY3kweExtMXdOQT09Ij48L2Rpdj4=" />
We are still in a "buy" cycle in the Tallahassee real estate market, but today's graph suggests that we might be moving beyond it in the coming months (or years). When you factor in the likely change coming for mortgage interest rates, my recommendation is for those homebuyers who have been sitting on the fence to get into the market and make your selection.
If you would like to know more about what's for sale in Tallahassee, just <a title="Contact Joe Manausa about what's for sale in Tallahassee" href="https://www.manausa.com/blog/drop-joe-a-note/">drop me a note</a> and we can schedule a time to show you a smarter way to buy a home.<br /><br />Joe Wrote The Book On How To Sell A Home Today
<a href="https://jmre.ws/a77gy" target="_blank"><img src="https://assets.site-static.com/userFiles/663/image/TBOGB-ebook-cover.png" width="300" height="401" target="_blank" alt="Joe Manausa wrote the book on how to sell a home in the digital age, you can find it here" title="How To Sell Your House In The Digital Age" class="img_box_left" /></a>“Location, location, location’ is no longer a competitive advantage. Digital marketing and going direct to consumer have made all geographical boundaries obsolete. The Business of Getting Business is a must-read modern-day survival guide for any local business to get to the next decade. Local businesses are on death ground.
They can either take a stand and re-invent themselves by embracing the digital frontier and have a chance to survive the overwhelming odds of digital direct-to-consumer capabilities that have erased all local and national business distinctions, or they can choose business as usual and accept certain death.
The Business of Getting Business is the critical survival guide for those that choose to dig in and fight.”<br /> – Anthony Noto, CEO, SoFi and former COO, Twitter
Get the book that explains it all, in a manner that is understanding to all, even technology neophytes. It's available on <a href="https://jmre.ws/a77gy" target="_blank" title="Joe's Book On How To Sell A Home">Amazon</a>, a trusted source for consumers.2014-07-09T07:47:00-07:002020-04-15T08:41:14-07:00Joe Manausatag:manausa.com,2012-09-20:4522Distressed Home Sales Remain SteadyThere is an interesting conflict developing for distressed home sales in Tallahassee. We are seeing roughly 30% of the homes selling each month come from <a href="https://www.manausa.com/distressed-property/">short sales, foreclosures and bank owned properties</a>, yet there are very few distressed listings entering the market.
That means buyers are flocking to a smaller pool of these below market properties, and we will soon see some changes occurring in what is closing.
Perhaps the big dip in buyer activity this summer can be blamed on the fewer offerings from short sale sellers.
Distressed Home Sales Graph
In the real estate graph below, we see both arms length home sales (green) and distressed homes sales (red) plotted and measured on the left vertical axis, while the overall percentage of distressed homes as a part of the whole market is shown as a red line and recorded on the right vertical axis.
<img class=" img_box_center" src="https://www.manausa.com/uploads/imagefiles/Distressed-Home-Sales.png" alt="Distressed Home Sales" width="551" height="537" />
It certainly could be possible that the declining supply of distressed properties for sale could be impacting buyer activity. Historically, we see more contracts in the months of April through June than we have seen thus far in 2014, and several of our articles recently have recorded both <a title="Opinion Poll: Where Have The Buyers Gone In Tallahassee?" href="https://www.manausa.com/blog/opinion-poll-where-have-the-buyers-gone-in-tallahassee/" target="_blank">the slowdown of buyers and the anticipated impact on closings in the months to come</a>.
<a name="listings"></a>
Distressed Homes For Sale In Tallahassee
The following list shows the most recently listed distressed properties in Tallahassee.
[idx-listings linkid="339267" count="10" showlargerphotos="true"]
These are just the ten newest properties, there are plenty more that you can find (updated twice each day) on our <a title="buy a home in Tallahassee" href="https://www.manausa.com/idx/results/" target="_blank">Tallahassee real estate property search tool</a>.
The key to buying a distressed property in Tallahassee lies in the preparation. If you are curious about these properties and go look at them without having all of your finances in order, it is not likely that you will bring about a successful home purchase.
If you would like to know more about buying distressed property in Tallahassee, just <a title="Contact Joe Manausa about distressed property in Tallahassee FL" href="https://www.manausa.com/blog/drop-joe-a-note/">drop me a note</a> and we will schedule a time to help you prepare to make a very good purchase.2014-06-19T06:24:00-07:002017-06-30T20:05:01-07:00Joe Manausatag:manausa.com,2012-09-20:4428Changing Times For Short Sales And Foreclosures In TallahasseeTimes and trends are changing for the short sales and foreclosures in Tallahassee.
What we often refer to as "<a href="https://www.manausa.com/distressed-property/">distressed properties</a>," we have seen a new industry within an industry arrive, dominate, and now recede, all in the past 7 years.
The percentage of distressed <a href="https://www.manausa.com/idx/search-form/">properties in Tallahassee that are being sold as short sales</a> is nothing like we have seen in the past, but you might be surprised how this change has impacted the liquidation of these non-performing loans.
Short Sales And Foreclosures In Tallahassee
The real estate graph below shows closed distressed sales in the <a title="property listings in the multiple listing service in Tallahassee Florida" href="https://www.manausa.com/idx/search-form/" target="_blank">Tallahassee MLS</a> since 2010.
<img class=" img_box_center" title="Short sales and foreclosures in Tallahassee" src="https://www.manausa.com/uploads/imagefiles/Short-Sales.png" alt="Short sales and foreclosures in Tallahassee" width="507" height="405" />
The information in the graph above is for January and February of each year. The black bars show the number of closed short sales, while the red bars show the number of all closed distressed home sales. The blue line measures the ratio of short sales to all distressed sales in the Tallahassee real estate market.
As you can see, 2014 has shown a great decline when compared to the past four years.
Cause Of The Huge Trend Change
There are a few factors that are working to force this huge trend change in our housing market. First of all, the <a title="It’s Time To Demand The Mortgage Forgiveness Debt Relief Act Extension" href="https://www.manausa.com/blog/mortgage-forgiveness-debt-relief-act-extension/" target="_blank">Mortgage Forgiveness Debt Relief Act</a> has not (yet) been extended to include 2014, and without this extension there will be less of a financial incentive for homeowners to undergo a short sale instead of waiting for a final foreclosure sale from the lender(s).
In the past few years, this law allowed short sellers the ability to sell their home for less than what was owed and not have to declare the debt relief as ordinary income. As things stand now though, if somebody utilizes a short sale to sell their home, they very likely will end up having to pay income taxes on the amount of debt that was forgiven by the bank.
Secondly, home values are on the rise in most US markets, so lenders might feel as if dragging their feet on a resolution for properties that are occupied might work in their favor. With owners living in the house and maintaining the properties, banks might very well feel as if time is on their side.
Of course, this kind of thinking does not work with vacant homes, and current appreciation levels will not keep up with the deterioration that occurs when nobody is living in and caring for a home.
So what does this mean for homebuyers in the market today? It means that there are fewer short sales available, and lower odds of successfully buying a short sale that appears to be available.
This likely will mean short sales will become a niche market where only investors will continue to pursue them, while owner-occupants will go the more traditional route, buying bank foreclosures/REO properties and arms length sales.
Recently Listed Short Sales And Foreclosures In Tallahassee
[idx-listings linkid="377978" count="5" showlargerphotos="true"]
If you want to know more about short sales and foreclosures (and even the good 'ol fashioned <a href="https://www.manausa.com/distressed-property/">arms length homes for sale</a>) in Tallahassee, just <a title="Contact Joe Manausa about short sales and foreclosures in Tallahassee" href="https://www.manausa.com/blog/drop-joe-a-note/" target="_blank">drop me a note</a> and we can schedule a time to help you prepare for getting the absolute best deal for you budget and time constraints.2014-03-07T10:10:00-07:002017-06-30T20:04:29-07:00Joe Manausatag:manausa.com,2012-09-20:4395A New Direction For The Inventory Of Homes For Sale In TallahasseeHaving just completed the <a title="Home Inventory Report February 2014" href="https://www.manausa.com/blog/" target="_blank">February edition of the housing report</a>, I can tell you we are starting to see the seasonal changes that lead to an increased inventory of homes for sale in Tallahassee.
Most years, we see people start to pull their homes off the market (if they are not sold) as the holidays arrive in late November, only to reappear on the market in the middle of February and extending on through the Summer.
So as we watch for this annual rise in available homes, let's take a detailed look at what the Tallahassee real estate market has to offer in 2014.
Inventory Of Homes For Sale In Tallahassee
The rush of <a title="Distressed property for sale in Tallahassee" href="https://www.manausa.com/distressed-properties/" target="_blank">short sales and foreclosures</a> that emerged in 2008 and continue through today has wreaked havoc on the status of the inventory available to homebuyers.
In the past, most homes that went "under contract" were either closed within 45 days, or were put back on the market after the buyer and seller failed to reach the closing table for one reason or another.
But today, things are quite different. Many short sale properties might be under contract for a year or more, thus representing a segment of the houses that appear to be "for sale," yet are likely to be unavailable for many people shopping for a home.
So why does that matter? Because we normally consider the total number of homes available when determining supply and demand, yet much of today's supply really isn't available any longer.
The graph below breaks the <a title="Tallahassee Home Inventory Report Febrary 2014" href="https://www.manausa.com/blog/tag/housing-report/" target="_blank">inventory of homes for sale in Tallahassee</a> into two segments. The blue bars show the number of homes listed that were "under contract" each month, while the red bars show the number of homes that were not. Both are measured on the left vertical axis.
The yellow line, measured on the right vertical axis, shows the percentage of available homes that were under contract each month.
<a title="See The Inventory Of Homes For Sale In Tallahassee FL" href="https://www.manausa.com/idx/results/"><img class=" img_box_center" title="See The Inventory Of Homes For Sale In Tallahassee FL" alt="Inventory Of Homes For Sale In Tallahassee FL" src="https://www.manausa.com/uploads/imagefiles/Status-Of-Homes-For-Sale-In-Tallahassee-FL.png" width="552" height="403" /></a>
The graph is showing us that there are more homes available in February than there were in January in the <a title="Listings of Tallahassee houses for sale" href="https://www.manausa.com/idx/search-form/" target="_blank">Tallahassee MLS</a>, but the percentage of those that are already "taken" has risen too, meaning buyers will feel a rise in inventory, yet not find a corresponding rise in the number of homes worth pursuing.
Hopefully, 2014 will bring a continued decline in the trend of homes under contract as a percentage of the current housing supply. This will mean that a higher percentage of homes are clearing through, whether as sales or as failed contracts.
If you would like to know more about understanding the inventory of homes for sale in Tallahassee, just <a title="Contact Joe Manausa about the inventory of homes for sale in Tallahassee" href="https://www.manausa.com/blog/drop-joe-a-note/" target="_blank">drop me a note</a> and we can schedule a time to help you apply this knowledge to savings when you sell or buy a home this year.2014-02-10T05:50:00-07:002017-07-01T01:03:22-07:00Joe Manausatag:manausa.com,2012-09-20:4385Distressed Homes Are Not Going Away In 2014Yes, the market is getting stronger every day, but that does not mean that we have seen the last of the distressed homes.
From coast to coast, I am seeing reports about <a title="How Short Sales Will Boost Home Sales In 2014" href="https://www.manausa.com/blog/short-sales-2014/" target="_blank">short sales</a> and foreclosures still being very prominent in the market, and that is very true still in the Tallahassee real estate market.
With roughly 30% of all home sales reported as non-arms-length, these problem properties will continue to impact home prices and home values throughout the 2014 selling year.
Distressed Home Sales Continue
With our first real estate graph of 2014 populated with several weeks worth of information, we see an actual increase in the number of <a title="Foreclosures for sale in Tallahassee Florida" href="https://www.manausa.com/distressed-property/" target="_blank">foreclosures</a>, <a title="Short sales for sale in the Tallahassee MLS" href="https://www.manausa.com/short-sale/" target="_blank">short sales</a>, and bank owned properties sold in the Tallahassee MLS.
<img class=" img_box_center" title="Distressed Homes Sold" alt="Distressed Homes Sold" src="https://www.manausa.com/uploads/imagefiles/Distressed-Home-Sales.png" width="532" height="341" />
In the graph above, the green bars (measured on the left vertical axis) measures the number of arms length home sales each year, the red bars (also measured on the left vertical axis) show the number of <a title="Distressed homes for sale in Tallahassee FL" href="https://www.manausa.com/distressed-properties/" target="_blank">distressed home sales</a>, while the red line (measured on the right vertical axis) records the ratio of distressed sales to all home sales each year. Surprisingly (though still very early in the year), we see the level rising after falling all last year.
Home Values By Type
Another interesting view of the Tallahassee real estate market can be seen when we segment the market by sale type.
<img class=" img_box_center" title="Distressed Home Values" alt="Distressed Home Values" src="https://www.manausa.com/uploads/imagefiles/Distressed-Home-Values.png" width="525" height="340" />
In this graph, average home values measured each year (shown in terms of price per square foot) from 2003 through late January 2014. Note the spike in distressed home values this year, the first in five years and the highest recorded values since 2009.
Home Prices By Type
Average home prices do not necessarily follow the same trends as average home values, as clearly seen in this next graph.
<img class=" img_box_center" title="Distressed Home Prices" alt="Distressed Home Prices" src="https://www.manausa.com/uploads/imagefiles/Distressed-Home-Prices.png" width="499" height="342" />
This appears to show that buyers are (on average) spending just over $220,000 for an arms length home purchase, while distressed home purchases are going for about $105,000 (less than half).
This likely means that many of the remaining foreclosures and short sales are investment class properties, whereas the typical arms length purchase is from single family homes that are primarily owner occupied.
We will continue to monitor the trend of distressed homes sold in Tallahassee, as they will continue to have an impact on home values for all home sellers and buyers.2014-01-29T06:34:00-07:002017-06-29T03:49:17-07:00Joe Manausatag:manausa.com,2012-09-20:4374Tallahassee Neighborhoods With The Most Foreclosed PropertiesThis weekend we posted our <a title="2013 Foreclosure Report - All foreclosed properties in 2013" href="https://www.manausa.com/blog/2013-foreclosure-report/" target="_blank">annual report on foreclosed properties</a>, listing every new lis pendens filed during 2013 and identifying trends that we feel will impact the Tallahassee real estate market.
I recommend you give it a read if you have any interest in distressed properties or if you plan on buying or selling a home this year. The included graphs show a major trend change that will impact the number of <a title="Short sales and foreclosures for sale in Tallahassee Florida" href="https://www.manausa.com/distressed-properties/" target="_blank">distressed homes for sale in Tallahassee</a> this year.
Today we'll look at the neighborhoods that posted the most new lis pendens filings, and which ones will likely see significant offerings this year from lenders and property owners that need to cure a problem.
Top Neighborhoods With New Foreclosed Properties
The real estate graph below shows the most active neighborhoods in Tallahassee, in terms of new lis pendens filings.
<img class=" img_box_center" title="New Foreclosured Properties In Tallahassee" alt="New Foreclosured Properties In Tallahassee" src="https://www.manausa.com/uploads/imagefiles/New-Foreclosures-In-Tallahassee.png" width="517" height="377" />
Not surprisingly, the most popular neighborhoods in Tallahassee (most active in home sales) are producing the most new lis pendens filings for distressed properties. <a title="Homes for sale in Killearn Lakes Plantation" href="https://www.manausa.com/killearn-lakes/" target="_blank">Killearn Lakes Plantation</a>, <a title="Homes for sale in Killearn Estates" href="https://www.manausa.com/killearn-estates/" target="_blank">Killearn Estates</a>, <a title="Homes for sale in Southwood" href="https://www.manausa.com/southwood/" target="_blank">Southwood</a>, and <a title="Homes for sale in Killearn Acres" href="https://www.manausa.com/killearn-acres/" target="_blank">Killearn Acres</a> are the top four, and all four are typically among the top five in home sales every year.
Tallahassee Foreclosure Reports
As a reminder, we publish weekly, monthly, quarterly, and annual foreclosure reports that bring all recent lis pendens filings forward long before you will find them on any other site. This means you can get a glimpse of future foreclosed properties and identify those which you might want to pursue even before they become available to the rest of the market.
You can find these reports at the Tallahassee Real Estate Blog by clicking "Blog" in the header menu and then selecting "Foreclosures." You can also navigate directly to updated Tallahassee Foreclosure Reports by typing "<a title="Foreclosed properties in Tallahassee, Florida" href="https://www.manausa.com/blog/tallahassee-short-sales/" target="_blank">/foreclosures</a>".
If you want to know more about buying foreclosed properties in Tallahassee, just <a title="Contact Joe Manausa about foreclosed properties in Tallahassee" href="https://www.manausa.com/blog/drop-joe-a-note/" target="_blank">drop me a note</a> and we will show you how to have the most current information right away.
2014-01-20T09:51:00-07:002017-07-01T01:04:58-07:00Joe Manausatag:manausa.com,2012-09-20:4403Tallahassee Foreclosure Filings January 14, 2014This is a list of properties that received a lis pendens filing in Tallahassee, for the week ending 1/14/2014. Most of the properties on this list will eventually show up in our market as short sales or as a foreclosure sale at the Leon County Court House.
<img class=" img_box_center" title="Foreclosures In Tallahassee FL" alt="Lis Pendens In Tallahassee FL" src="https://www.manausa.com/uploads/imagefiles/Lis-Pendens-In-Tallahassee-FL.png" width="463" height="338" />
Subdivision/Location
Address
Sqft
Age
Date
Tax Value
HARTSFIELD WOODS
2324 VIA SARDINIA ST
1,290
1987
1/8/2014
$115,752
BARRINGTON PARK CONDO
2801 CHANCELLORSVILLE DR
1,397
2004
1/8/2014
$90,000
SAWGRASS PLANTATION TOWNHOMES
2931 ROYAL PALM WAY
1,400
1995
1/8/2014
$92,718
AUTUMN WOODS
5647 DOONESBURY WAY
910
1977
1/8/2014
$62,559
LINWOOD MANOR
2503 WALDEMAR LN
1,794
1972
1/8/2014
$96,801
LAKE HERITAGE ESTATES
2055 LITTLE RIVER LN
1,012
1980
1/9/2014
$82,740
FOREST HEIGHTS
1317 SHARON RD
1,612
1958
1/9/2014
$106,649
MEADOWBROOK
2418 BEAUTYBERRY CT
1,943
1994
1/9/2014
$160,483
11-01N-01E
2175 BRIM LN
1,781
1995
1/10/2014
$131,671
ACME GARDENS
675 W 6TH AVE
1,050
1987
1/10/2014
$57,408
13-01S-01W
3650 WOODVILLE HWY
5,116
1980
1/10/2014
$360,885
19-01N-03E
580 ROBINSON FARMS RD
2,173
2000
1/10/2014
$216,442
REXWOOD
2905 MISSION RD
1,272
2004
1/10/2014
$74,996
28-02N-02E
6610 PROCTOR RD
1,887
1989
1/13/2014
$105,711
04-01N-01W
2008 CYNTHIA DR
1,865
1970
1/13/2014
$133,962
SOUTH 1/2 OF COUNTY 1/4
601 S COPELAND ST
1,219
1/14/2014
$705,672
PLANTATION ESTATES
2112 PLANTATION FOREST DR
1,792
1985
1/14/2014
$50,127
31-01S-01W
5106 WALNUT GROVE LN
3,791
2000
1/14/2014
$141,676
BOXWOOD ESTATES
5062 WOODMIRE CT
1,344
2007
1/14/2014
$54,797
2014-01-14T18:33:00-07:002017-06-30T05:03:18-07:00Joe Manausatag:manausa.com,2012-09-20:4339Tallahassee Foreclosure Sales Rise 316%In case you missed our update on Tallahassee foreclosure sales, the year over year change in November showed a rise of 316%.
Yeah, that's not a typo, our <a title="Tallahassee Foreclosure Report" href="https://www.manausa.com/blog/tallahassee-short-sales/" target="_blank">latest report on foreclosure sales in Tallahassee</a> showed 187 recorded in November, versus 45 that were recorded in November 2012.
So is this bad news or good news for the Tallahassee real estate market?
Huge Increase In Tallahassee Foreclosure Sales
It's hard to fathom that a report of a substantial increase in the number of foreclosures could have any bit of good news attached to it, but we have found it.
The key to seeing why this will impact Tallahassee in a positive manner lies in an examination of the entire distressed market as well as the process that occurs in the creation of a foreclosure sale.
When a lender has a non-performing loan and they want to take formal action, they file a "lis pendens" to start the foreclosure process. If the owner of the property is not able to work things out or sell the property, the lender takes ownership or liquidates the property through a foreclosure sale.
Thus, when we use the term "foreclosure" or "foreclosure sale," we are actually referring to last step in the foreclosure process.
Historically, only a small percentage of lis pendens filings became foreclosures, as the owners were able to sell the property or make things right with the bank. But times have changed.
Most homeowners do not have equity in their homes, so instead of an arms length sale, they must attempt a short sale in order to avoid foreclosure.
If the lender(s) do not approve, then they will be foreclosed upon.
Lis Pendens Decline
The good news in the distressed properties market is that new lis pendens filings are on the decline.
<a href="https://www.manausa.com/uploads/imagefiles/Tallahassee-Foreclosures.png"><img class=" img_box_center" src="https://www.manausa.com/uploads/imagefiles/Tallahassee-Foreclosures.png" alt="Tallahassee Foreclosures" width="518" height="378" /></a>
In the real estate graph above, new lis pendens are shown in green (one-year trend) while the one-year trend of foreclosure sales is shown in red. The blue line shows the ratio of foreclosure sales to lis pendens filings, and we have hit 100%. It will certainly go higher if lis pendens continue to decline at such a (nice) rapid pace.
So the good news that we can glean from this report is that action is being taken to reduce the distressed properties in Tallahassee. Lis pendens filings are on the decline, and ultimately that will mean fewer foreclosure sales in the future.
If you are interested in discovering how the latest news and the Tallahassee Foreclosure Report will impact your ability to sell a home, just <a title="Contact Joe Manausa about the Tallahassee Foreclosure Report" href="https://www.manausa.com/blog/drop-joe-a-note/" target="_blank">drop me a note </a>and we can schedule a time to review your home's value in the Tallahassee real estate market.2013-12-16T07:04:00-07:002017-06-30T23:02:39-07:00Joe Manausatag:manausa.com,2012-09-20:4291Tracking Trends Of Distressed Homes For SaleI have been monitoring and reporting on the number of distressed homes for sale for more than seven years.
Prior to 2007, <a title="Foreclosures for sale in Tallahassee Florida" href="https://www.manausa.com/distressed-property/" target="_blank">foreclosures</a>, <a title="Short sales for sale in Tallahassee Florida" href="https://www.manausa.com/short-sale/" target="_blank">short sales</a>, and bank owned properties were such an insignificant percentage of the Tallahassee real estate market that there was really no need to consider them as anything more than "noise" in our data.
But times change, so we are constantly monitoring the <a title="Charts, graphs, and analysis of the Tallahassee real estate market" href="https://www.manausa.com/blog/tag/housing-report/" target="_blank">inventory of homes for sale</a> that are being sold under less than ideal situations.
Distressed Homes For Sale Graph
If you are a new arrival to the <a title="Real Estate Tallahassee Florida" href="https://www.manausa.com/blog/" target="_blank">Tallahassee Real Estate Blog</a>, then "welcome!"
But if you are a long-term reader of our blog and housing reports, then you will be seeing something that we talk about regularly, but displayed in a different light.
The following <a title="Graphs and Charts for the real estate market in Tallahassee" href="https://www.manausa.com/blog/" target="_blank">real estate graph</a> is titled "distressing" rather than "distressed" because it focuses on the changes that are occurring in the market. Specifically, it measures the long and short term trends of distressed homes for sale as a percentage of the overall market.
<a title="Trend Of Distressed Homes For Sale" href="https://www.manausa.com/distressed-properties/"><img class=" img_box_center" title="Trend Of Distressed Homes For Sale" alt="Trend Of Distressed Homes For Sale" src="https://www.manausa.com/uploads/imagefiles/Trend-Of-Distressed-Homes-For-Sale.png" width="553" height="404" /></a>
From the graph above, we track the average percentage of homes that are being listed as "distressed" versus <a title="Tallahassee MLS listings of homes for sale" href="https://www.manausa.com/idx/search-form/" target="_blank">all homes listed in the Tallahassee MLS</a>.
The longest trend is the 365 day trend line (orange) which shows that over the past year, roughly 19% of the homes listed for sale in Tallahassee were marketed as distressed. The shortest trend (red line) shows that over the past 30 days, roughly 20% of the homes that came on the market were distressed.
If we start seeing the shorter trends move consistently different than the longer trends, then we can expect the long-term trend to start moving in that direction. Unfortunately, the data that we need for this graph is only about 14 months old, so it will take some time to identify the seasonal impact of homes entering the market versus the situational nature of the short sales and foreclosures that are being listed.
<a name="map"></a>
Distressed Homes For Sale Right Now
The following map shows current listings in the Tallahassee MLS that are marked as short sales, foreclosures, and bank owned properties. If you want to see more about a specific listing, simply click on its location marker and the listing page will appear.
I hope you found our latest view of distressed homes for sale informative, if you would like to know more you can always <a title="Contact Joe Manausa about distressed homes for sale in Tallahassee Florida" href="https://www.manausa.com/blog/drop-joe-a-note/" target="_blank">drop us a note</a> anytime, we respond lighting fast!2013-10-25T07:53:00-07:002017-06-30T20:05:03-07:00Joe Manausatag:manausa.com,2012-09-20:4238Why Foreclosures In Tallahassee Are Still AbundantA good friend of mine who is also a real estate investor sent me an article yesterday that provides some insight as to why foreclosures in Tallahassee are going nowhere fast.
The recent article by <a title="Zombie Homes Explained" href="http://247wallst.com/special-report/2013/09/12/states-with-the-most-zombie-homes/" target="_blank">247wallst.com on "zombie homes,"</a> pointed out that roughly one in every five of the 770,000 homes in foreclosure across the US are vacant, and it's as if nobody wants them. But the big shocker is what this article explained about the foreclosure process.
Foreclosures In Tallahassee Take Too Long
It's one thing to say that the foreclosure process takes a long time. But if the information provided by 247wallst.com (via RealtyTrac) is accurate, then it goes a long way towards explaining the situation regarding <a title="List of the newest foreclosures in Tallahassee Florida" href="https://www.manausa.com/foreclosures/" target="_blank">foreclosures in Tallahassee</a>. The article explained:
The average U.S. foreclosure ending in the second quarter of this year took 526 days to process. In some of the states with the most zombie homes, the average processing period was much higher. In Florida, the average foreclosure took 907 days to complete.
By my simple math, this means that the average time it takes for foreclosures in Tallahassee to go from a lis pendens filing to a foreclosure sale is 2.5 years. To put that into perspective, it means that the <a title="Most recent foreclosures to hit the Tallahassee real estate market" href="https://www.manausa.com/foreclosures/" target="_blank">newest foreclosures in Tallahassee</a> (September 2013) had the initial action (on average) filed in March 2011.
Why We Still Have Foreclosures In Tallahassee
<a title="Foreclosures in Tallahassee Florida" href="https://www.manausa.com/uploads/imagefiles/Foreclosure-Sales-Delays1.png"><img class=" img_box_right" title="Foreclosures in Tallahassee Florida" alt="Foreclosures in Tallahassee Florida" src="https://www.manausa.com/uploads/imagefiles/Foreclosure-Sales-Delays1.png" width="280" height="280" /></a>The simple reason that we still have homes in the foreclosure process is due to fact that demand for all homes has declined in Tallahassee. Even 2013, the best year on record going back to 2007/2008, is still recording home sales at a rate slower than what we saw in the 1990s.
With the glut of <a title="Tallahassee MLS listings of houses for sale" href="https://www.manausa.com/idx/results/" target="_blank">homes for sale in Tallahassee</a>, the ones that are not in peak shape are being sold at a large discount (a discount too large for the banks to allow). So we have the banks saying "no" to short sales, while also not proceeding forward on the foreclosure sale. When will it come to an end?
The answer most likely is dependent on each different lender in our area, and to a degree, each property. If the bank feels that a property in foreclosure is appreciating (which is the case for homes under $225K on the eastern half of the Tallahassee real estate market), then the bank knows that a delay might actually result in more money for the bank.
Of course, I think most banks fail to realize the rapid decline of vacant foreclosures in Tallahassee. Our high temperatures and high humidity are not favorable for maintaining vacant housing.
If you are a real estate investor and want to be on the alert for the <a title="Most recent foreclosures to hit the Tallahassee real estate market" href="https://www.manausa.com/foreclosures/" target="_blank">newest foreclosures in Tallahassee</a>, just <a title="Contact Joe Manausa about foreclosures in Tallahassee Florida" href="https://www.manausa.com/blog/drop-joe-a-note/">drop me a note</a> and we can set you up with an investment specialist who will notify you of all the best deals in Tallahassee.2013-09-16T05:36:00-07:002017-07-01T04:29:19-07:00Joe Manausatag:manausa.com,2012-09-20:4199Is This The Beginning Of The End For Tallahassee Home Foreclosures?I was updating our <a title="Tallahassee Home Foreclosures Report" href="https://www.manausa.com/blog/tallahassee-short-sales/" target="_blank">monthly report on Tallahassee home foreclosures</a> and found what is likely very good news for the Tallahassee real estate market.
New lis pendens in Tallahassee are on a decline, meaning that the number of people being served foreclosure suits is finally falling.
But the percentage of these new filings that result in Tallahassee home foreclosures is on the rise.
Tallahassee Home Foreclosures Report
If you like to keep abreast of recent Tallahassee home foreclosures, we provide weekly, monthly, quarterly, and annual reports at <a href="https://www.manausa.com/blog/tallahassee-short-sales/">/foreclosures/</a>. Historically foreclosures are such a small percentage of home sales in the Tallahassee real estate market, but that all changed back in 2007.
<a href="https://www.manausa.com/uploads/imagefiles/Tallahassee-Foreclosures.png"><img class=" img_box_center" alt="Tallahassee Foreclosures" src="https://www.manausa.com/uploads/imagefiles/Tallahassee-Foreclosures.png" width="553" height="401" /></a>
In the Tallahassee home foreclosures graph above, monthly foreclosures are tracked from January 2008 through July 2013 (red bars). The one-year trend (monthly average) is shown as a yellow line, and the current trend is about 110 per month (roughly 10 times the level shown in 2008).
To put this into context, home sales in the <a title="Homes for sale in Tallahassee Florida" href="https://www.manausa.com/idx/search-form/" target="_blank">Tallahassee MLS</a> just exceeded an average of 300 per month, so 110 foreclosures is no small matter. Some of these 110 are counted among the 300 sales, while many are just taken back by the bank and will need to enter the market to be resold.
Future Of Tallahassee Home Foreclosures
So how is the market actually faring when we look to the future of Tallahassee home foreclosures?
The <a title="Real Estate Tallahassee Graphs" href="https://www.manausa.com/blog/" target="_blank">real estate graph</a> below shows new lis pendens filings each month, as well as the one-year trend.
<a href="https://www.manausa.com/uploads/imagefiles/Tallahassee-Lis-Pendens.png"><img class=" img_box_center" alt="Tallahassee Lis Pendens" src="https://www.manausa.com/uploads/imagefiles/Tallahassee-Lis-Pendens.png" width="552" height="406" /></a>
The trend is still very (VERY) high at 140 per month. We can expect many more Tallahassee home foreclosures if we are seeing 140 homeowners served a new lis pendens each month.
But there is an exciting decline in the trend that accelerated in June, and July posted the fewest new lis pendens filed since before our graph was started in 2008. Could this signal a significant turn for <a title="List of Tallahassee home foreclosures and short sales" href="https://www.manausa.com/distressed-property/" target="_blank">distressed properties in Tallahassee</a>?
We have already reported a rise in distressed home values for homes priced between $125,000 and $250,000, and a decline in new lis pendens is only going to strengthen this trend. The key will continue to rest on demand (how many buyers are in the market) and on the rate at which banks release inventory into the market.
If you would like to know more about how to purchase the best Tallahassee home foreclosures before the market returns to normal levels, just <a title="Contact Joe Manausa about Tallahassee home foreclosures" href="https://www.manausa.com/blog/drop-joe-a-note/" target="_blank">drop me a note</a> and we can schedule a time to review your needs, wants, and requirements.2013-08-15T08:22:00-07:002017-06-30T10:08:15-07:00Joe Manausatag:manausa.com,2012-09-20:4179How To Buy A Home After A Short SaleI received <a title="Knowing When To Put Your House On The Market To Meet A Deadline" href="https://www.manausa.com/blog/when-to-put-your-house-on-the-market/" target="_blank">another reader question</a> today from somebody who wants to buy a home after a short sale.
This topic is one that will start to get a whole lot of national attention, as millions of people who normally own a home will be branded as "unlendable" for a period of time.
It is the primary reason that I am writing a series of articles about <a title="Buy a home after a short sale with credit repair" href="https://www.manausa.com/idx/results/" target="_blank">credit repair for homebuyers</a> and what people need to do to get back into home ownership.
To Buy A Home After A Short Sale Requires Time
I received the following question from "LE":
I had a forced relocation due to the economic downturn about 18 months ago. I sought legal advice, hired an attorney and did a short sale, (completed this about two months ago). I was told in the beginning this would just ding my credit and if I maintained my other obligations, I would be able to purchase another home in a month after my SS finalized.
Now I am being told NO by every lender I have contacted. Never had a late payment or any scars on my credit except the SS, not even a late payment from any other obligation. Rating is 716 currently. I would expect to pay a little higher rate, but can't even get someone to write a loan. I would like to purchase a home in Tallahassee. Any suggestions? Can you point me to a lender, I am not a bum and have a very good income.
Unfortunately, only part of the financial advice that LE received was accurate. I suspect it was smart to do the short sale, and it was smart to stay current on his financial obligations (thus only a ding on his credit ... which now is over 700). But from everything that I have read, LE will have to wait a total of 3 years from the finalization of his short sale before he will qualify for a government-backed loan to buy a home after a short sale. (Technically, there is a two-year wait solution with a 20% down payment).
You Don't Have To Wait After A Short Sale
<a title="Buy A Home After A Short Sale" href="https://www.manausa.com/uploads/imagefiles/Buy-A-Home-After-A-Short-Sale.jpg"><img class=" img_box_right" title="Buy A Home After A Short Sale" alt="Buy A Home After A Short Sale" src="https://www.manausa.com/uploads/imagefiles/Buy-A-Home-After-A-Short-Sale.jpg" width="275" height="275" /></a>So LE has two options. He can rent until the waiting time has expired (which could change to less than three years at any time) or he can figure out how to buy a home after a short sale without a government backed loan.
For the time being, it is likely banks will not be able to help him. They are not flush with creative loan products right now, and the sting of the housing market collapse is still smarting.
I suspect that we will see changes in this over the next year or two, as investors realize a whole lot of people like LE who have maintained a mortgage for years are out there.
So what can LE do now?
How To Buy A Home After A Short Sale
There are many <a title="Use Creative Home Financing to buy a home after a short sale" href="https://www.manausa.com/blog/creative-home-financing/" target="_blank">creative solutions</a> for buyers like LE. He can find the right home and make a very attractive lease-purchase offer to the seller. He can make payments to them for 34 months, and then close on the purchase when he is credit worthy again.
He could also buy a home after a short sale with owner financing and/or do a wrap-around mortgage. With strong credit, it won't be hard to help LE buy a home right away.
Every form of "creative financing" will bear some sacrifice and risk, so it is imperative that LE receive guidance from a <a title="Buy a home after a short sale with Joe Manausa Real Estate" href="https://www.manausa.com/agents/276/joe-manausa/" target="_blank">trustworthy real estate professional</a>. Additionally, he should plan on speaking with a <a title="Florida Real Estate Attorney" href="http://manausalaw.com/danny-manausa/" target="_blank">real estate attorney</a> who can counsel him on the risks incurred with each creative solution.
I expect my firm will help hundreds, if not thousands of people like LE in the coming years. We have already begun the training and education process for our <a title="Tallahassee Realtor" href="https://www.manausa.com/agents/276/joe-manausa/" target="_blank">real estate agents</a> to be able to guide these special homebuyers through the creative solutions that will be required to buy a home after a short sale.
If you would like to buy a home after a short sale and want to know the most creative agent with whom you should work, just <a title="Contact Joe Manausa to buy a home after a short sale" href="https://www.manausa.com/blog/drop-joe-a-note/" target="_blank">drop me a note</a> and we can ensure you work with a knowledgeable, trusty worthy real estate professional.
*Joe Manausa Real Estate is a brokerage company headquartered in Tallahassee, Florida. Its unique business model provides specialists to both home sellers and home buyers, and the results speak for themselves. JMRE has significantly more 5-star reviews on google than any other local competitor. Joe Manausa Real Estate is a leader in internet marketing and utilizes search engine optimization, email marketing, social media and data analytics to get their clients’ home sold faster and for more money than any other Tallahassee brokerage firm. For more information, visit <a href="https://www.manausa.com/">www.manausa.com</a> or call us at (850) 366-8917.2013-07-23T08:38:00-07:002018-04-24T09:59:30-07:00Joe Manausatag:manausa.com,2012-09-20:4098Tallahassee Short SalesAfter seeing positive movement for home values in yesterday's <a title="Tallahassee Real Estate Report For May 2013" href="https://www.manausa.com/blog/tallahassee-real-estate-report-may-2013/" target="_blank">Tallahassee Real Estate Report</a>, I had a reader ask me about the current trend for Tallahassee short sales and how they might affect the market moving forward.
I would think that a decline in <a title="Information About Tallahassee Short Sales" href="https://www.manausa.com/blog/tallahassee-short-sale-option/" target="_blank">Tallahassee short sales</a> could be a sign that we have reached (or are closely approaching) the peak of the distressed property liquidation, while the opposite could suggest that continued pressure on home values remains the trend.
Tallahassee Short Sales
The real estate graph below shows all home sales recorded in the <a title="Homes for sale in Tallahassee Florida" href="https://www.manausa.com/idx/search-form/" target="_blank" rel="nofollow">Tallahassee MLS</a> from January 2009 through the end of April 2013.
The blue shaded area measures closed home sales that were not short sales, while the red shaded area measures <a title="Tallahassee Real Estate Report For May 2013" href="https://www.manausa.com/blog/tallahassee-real-estate-report-may-2013/" target="_blank">closed home sales</a> that were "short."
The one-year trend of the ratio of Tallahassee short sales to all closed home sales is shown with a red line and is measured on the right vertical axis.
<a title="Tallahassee Short Sales" href="https://www.manausa.com/uploads/imagefiles/Tallahassee-Short-Sales.png"><img class=" img_box_center" title="Tallahassee Short Sales" alt="Tallahassee Short Sales" src="https://www.manausa.com/uploads/imagefiles/Tallahassee-Short-Sales.png" width="534" height="407" /></a>
Unfortunately, this means that the trend for <a title="Short sales in Tallahassee Florida" href="https://www.manausa.com/blog/short-sales-in-tallahassee/" target="_blank">short sales in Tallahassee</a> is still rising, and we have not seen the peak of the market for distressed home sales.<br /><br />Final Round For Tallahassee Short Sales
<a title="Tallahassee Short Sales" href="https://help.manausa.com/should-i-short-sale-my-home-2/"><img class=" img_box_left" title="Click Here For The Free e-Book: Should I Short Sale My Home" alt="Information About Tallahassee Short Sales" src="https://www.manausa.com/uploads/imagefiles/Should-I-Short-Sale-My-Home-E-Book-300x430.gif" width="300" height="430" /></a>My advice to homeowners who are <a title="Don't be stuck in a house" href="https://www.manausa.com/blog/stuck-in-a-house/" target="_blank">upside-down in their homes</a>, but want to move is to take a close look at the short sale process.
For the many clients that we have helped go through a short sale, I can tell you it was a blessing. While nobody likes selling for a loss, the deals that banks are still approving make <a title="What other people considered before doing a short sale" href="https://www.manausa.com/blog/should-i-short-sale-my-home/" target="_blank">doing a short sale</a> a smart solution for many people.
But I do think time is running out.
There will be a shift in the balance of "power," when banks decide they will no longer <a title="Is there such a thing as a " pre-approved="" short="" sale="" href="https://www.manausa.com/blog/tallahassee-short-sales-approved/" target="_blank">approve short sales</a> and sellers will be held accountable for the full amount that they owe. This will occur when values begin to approach levels last seen in 2008 or so.
My recommendation is to do your research now. Read the e-book (<a title="Reference Guide For Short Sales" href="https://help.manausa.com/should-i-short-sale-my-home-2/" target="_blank">Should I Short Sale My Home?</a>) and make an educated decision on your best course of action moving forward.
And if I can help you with deciding whether or not your home should join other Tallahassee short sales, just <a title="Advice on Tallahassee Short Sales For Homeowners" href="https://www.manausa.com/blog/short-sale-advice-form/" target="_blank">make contact with me</a> and we can schedule a time to review your specific situation and needs.2013-05-02T07:39:00-07:002019-01-28T11:09:21-07:00Joe Manausatag:manausa.com,2012-09-20:4083Distressed Homes In Tallahassee On Weakening TrendAs we approach the end of April, it appears as if a new trend is forming for distressed homes in Tallahassee.
We use the term "distressed" when we refer to properties where the homes are being sold under "other than normal" conditions, such as <a title="Tallahassee MLS listings of short sales" href="https://www.manausa.com/short-sale/" target="_blank" rel="nofollow">short sales</a>, <a title="Tallahassee MLS Listings of Foreclosures" href="http://www.tallahasseehomelistings.com/index.php?page=listings&mysearches=y&frmsubmitaction=search&suid=&searchid=&as_foreclosure=1&as_pricefrom=&as_priceto=&as_bedrooms_min=&as_bedrooms_max=&as_yearbuilt_min=&as_yearbuilt_max=&as_bathrooms_min=&as_bathrooms_max=&as_acres_min=&as_acres_max=&as_keywords=&as_school=&as_officeid=" target="_blank" rel="nofollow">foreclosures</a>, and bank owned properties.
Currently, there are still hundreds of <a title="Tallahassee MLS Listings Of Distressed Homes In Tallahassee Florida" href="https://www.manausa.com/distressed-property/" target="_blank">distressed homes for sale in Tallahassee</a> and recent foreclosure activity suggests we should expect a lot more coming into the Tallahassee real estate market.
Closed Distressed Homes In Tallahassee
The one year trend of closed distressed homes in Tallahassee appears to be declining as of three months ago when the trend hit an all time high of 37%.
<a title="Tallahassee Distressed Homes" href="https://www.manausa.com/uploads/imagefiles/Distressed-Homes-In-Tallahassee.png"><img class=" img_box_center" title="Tallahassee Distressed Homes" alt="Tallahassee Distressed Homes" src="https://www.manausa.com/uploads/imagefiles/Distressed-Homes-In-Tallahassee.png" width="516" height="333" /></a>
In the <a title="Charts, graphs, and analysis of the Tallahassee real estate market" href="https://www.manausa.com/blog/" target="_blank">real estate graph</a> above, the green area measures closed arms length home sales, while the red area measures closed distressed homes in Tallahassee. The red line shows the one year trend of the ratio of distressed to arms length home sales.
Status Of Distressed Homes In Tallahassee
When we look at the current crop of distressed homes in Tallahassee listed for sale in the <a title="Homes For Sale In Tallahassee" href="https://www.manausa.com/idx/search-form/" target="_blank" rel="nofollow">Tallahassee MLS</a>, we find that 35% of them are already under contract. When we segregate the property listings by status, we find the following:
<a title="distressed homes in Tallahassee Graph" href="https://www.manausa.com/uploads/imagefiles/distressed-homes-in-Tallahassee-Graph.png"><img class=" img_box_center" title="distressed homes in Tallahassee Graph" alt="distressed homes in Tallahassee Graph" src="https://www.manausa.com/uploads/imagefiles/distressed-homes-in-Tallahassee-Graph.png" width="515" height="382" /></a>
So 56% of "contingent listings" are distressed properties, while only 26% of homes with no contract are distressed. Finally, 35% of listings marked "Pending" are distressed.
<a rel="nofollow" name="listings"></a>
Listed Distressed Homes In Tallahassee
The following list shows the distressed homes for sale in Tallahassee as of the date of this publishing. You can sort it and do searches with the custom search box. Of course, we also keep a list of the best distressed home buys in Tallahassee that is always updated and free to access at any time.
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If you have found a listing from these distressed homes in Tallahassee that you would like to see, just <a title="Contact Joe Manausa about distressed homes in Tallahassee" href="https://www.manausa.com/blog/drop-joe-a-note/" target="_blank" rel="nofollow">drop me a note</a> and we can schedule a time to discuss the current status of the property and whether or not it really fits your needs.2013-04-22T06:58:00-07:002018-02-05T12:56:45-07:00Joe Manausatag:manausa.com,2012-09-20:3438How To Use The Short Sale Paradigm To End Your Real Estate Dilemma<a href="https://www.manausa.com/uploads/imagefiles/Short-Sale-Paradigm.gif"><img class=" img_box_right" title="Short Sale Paradigm" alt="Short Sale Paradigm" src="https://www.manausa.com/uploads/imagefiles/Short-Sale-Paradigm.gif" width="320" height="216" /></a>Everybody knows the basics of getting a home sold. Of course, everybody used to know that the Earth was flat and that the Universe rotated all around us. There have been many other examples in history where rock-solid beliefs were changed, and now I suggest you consider the <a title="short sale paradigm" href="https://www.manausa.com/idx/search-form/" target="_blank">short sale paradigm</a> as a way to <a title="How To Sell A Home In 2012" href="https://www.manausa.com/blog/expired/" target="_blank">end your current real estate dilemma</a>.
The image on the right was used by Thomas Kuhn when he coined the term "paradigm" as a way to illustrate the concept of how our perception of something can change when we look at it with different information. For example, what do you see when you look at the picture? Is it a rabbit, or is it a duck?
Most people who want to <a title="How To Get A Home Sold Now" href="https://www.manausa.com/blog/home-sellers/" target="_blank" rel="nofollow">sell a home right now</a> cannot figure out what to do. Perhaps they owe more money on it than it is worth, or maybe they've lost more money than they can stomach right now. I understand, as I speak with homeowners all the time and I myself have been there too.
But these homeowners are trapped in a paradigm, where they see selling their home as a means to gain enough money to buy another one, or to pay off its mortgage, or to accomplish a certain goal. And this is where the short sale paradigm can help.
How To Use The Short Sale Paradigm
When you first looked at the image on the right, perhaps you only saw a duck. After I questioned if you saw a rabbit, you were able to see the rabbit in the image as well. Maybe it was the other way around.
Take a lesson from Kuhns's illustration and apply it to your current housing situation. I recommend that you take a fresh look at your situation and choose the least painful solution. There is no magic trick, no silver bullet that will help you recover the 30+% loss of value that has occurred since 2006. But there is a <a title="How Joe Manausa Real Estate In Tallahassee Sells A Home" href="https://www.manausa.com/blog/" target="_blank" rel="nofollow">solution to your housing problem</a>.
The first step is to determine if you really have a problem. If you plan on being in your home for ten or more years, you do not have a problem. Values went up, values went down, values will go up again. Why am I so confident that real estate values will go up again?
Supply and demand dynamics, coupled with the rising cost of production over time all but guarantee historic real estate appreciation levels. Remember, home values rose faster than normal from 2000 to 2006, so we are just seeing a return to levels consistent with the appreciation rate seen for the past 50 years. Tallahassee still has too many homes for sale (as do most US housing markets), but this too will pass. Our population is growing, thus our need for housing is growing. We will again see times when supply and demand are in balance.
But if you know you will be moving in the next five years, I suggest you consider the short sale paradigm.
Right now, most homeowners see a large mortgage balance or a huge amount of money that has been lost. Sadly, this vision is stopping them from moving on with their lives. But what decision would they make if these were not an issue? If the answer is "sell right away," then that is what they really should be doing.
Short Sale Paradigm Will Set You Free
For those that have too large of a mortgage, the short sale is the right answer. As we discussed in our last <a title="What The Gold Rush Of 1849 Can Teach Us About Short Sales In 2012" href="https://www.manausa.com/blog/gold-rush-short-sales/" target="_blank">blog about short sales</a>, banks are making deals with homeowners right now that are almost too good to be true. We do not expect these great deals to last forever, so don't miss the train because your vision is blurred by a pre-existing paradigm.
For our readers who have lost more money than they feel they can stomach, I would suggest a paradigm shift as well. Right now, perhaps you believe that if you sell your home, you will lose a lot of money. The change in paradigm suggests that you have already lost the money (the market has already dropped), so the real question is should you hold on to the home so that you do not realize the loss, or sell it now to accomplish the goals that you have.
<a title="How to decide whether or not to short sale your home" href="https://help.manausa.com/should-i-short-sale-my-home-2/" target="_blank" rel="nofollow"><img class=" img_box_left" title="Should I Short Sale My Home e-Book" alt="Should I Short Sale My Home e-Book" src="https://www.manausa.com/uploads/imagefiles/Should-I-Short-Sale-My-Home-E-Book-200x287.gif" width="200" height="287" /></a>My best recommendation for both paradigms is to educate yourself on all the options the market is willing to provide. For this purpose, we have prepared a <a title="Pros and cons of short selling a home" href="https://help.manausa.com/should-i-short-sale-my-home-2/" target="_blank" rel="nofollow">FREE 86 page short sale resource</a> that you can download from our Tallahassee real estate website. It provides a lot of information that most homeowners do not know, and it might help you understand why a good solution already exists for your problem.
Of course, if you would like to sit down and discuss your situation, I can <a title="Contact Joe Manausa in Tallahassee Florida Real Estate" href="https://www.manausa.com/blog/drop-joe-a-note/" target="_blank">help you sort through your options</a>. There is no need to be trapped into owning a home because you think it is the best financial solution to your problem. You most likely are trapped in a paradigm that is not letting you properly evaluate all other choices, so please move now to consider the short sale paradigm.
Joe Manausa Real Estate is a brokerage company headquartered in Tallahassee, Florida. Its unique business model provides specialists to both home sellers and home buyers, and the results speak for themselves. JMRE has significantly more 5-star reviews on google than any other local competitor. Joe Manausa Real Estate is a leader in internet marketing and utilizes search engine optimization, email marketing, social media and data analytics to get their clients’ home sold faster and for more money than any other Tallahassee brokerage firm. For more information, visit <a href="https://www.manausa.com/">www.manausa.com</a> or call us at (850) 366-8917.2011-12-19T10:22:00-07:002018-03-20T08:01:11-07:00Joe Manausatag:manausa.com,2012-09-20:2818Short Sales In Tallahassee<a title="Short Sale Locator in Tallahassee" href="https://www.manausa.com/blog/tallahassee-short-sales/" target="_blank"><img class=" img_box_right" title="Find The Best Short Sales Available In Tallahassee" alt="" src="https://www.manausa.com/uploads/imagefiles/button-short-sales.png" width="163" height="100" /></a>As we frantically assemble our new <a title="Tallahassee Real Estate Blog and Website" href="https://www.manausa.com/" target="_blank">Tallahassee Real Estate Web Site</a>, one highly requested feature is finally coming together. Through all of the surveys that we conducted across many real estate web portals, a common theme arose. People wanted to know more about what was happening with foreclosures in Tallahassee, and specifically home buyers wanted information about the <a title="What Short Sales are available in Tallahassee" href="https://www.manausa.com/blog/tallahassee-short-sales/" target="_blank">short sales available in Tallahassee</a>.
Tallahassee Short Sales Page Being Assembled
The <a title="Short Sale Listings in Tallahassee" href="https://www.manausa.com/blog/tallahassee-short-sales/" target="_blank">Tallahassee Short Sales Page</a> is a work in progress, and I must warn you that it is no beauty. We are working on it and it will take several more days (and maybe even weeks) before it is fully assembled. Eventually, it will feature many more tools as well as the hottest short sales in Tallahassee. I would recommend you check this page on a daily basis if you are are serious buyer in the Tallahassee housing market, as most new short sales get offers right away.
Short Sale Advice
Please use the comments section to provide any advice or feedback that you have for improving the <a title="Short Sale Listings in Tallahassee" href="https://www.manausa.com/blog/tallahassee-short-sales/" target="_blank" rel="nofollow">Tallahassee Short Sales Page</a>. Much of the content of this very site is the result of reader and visitor feedback to both the Tallahassee Real Estate Blog and the main web site. With your help, we will assemble the greatest short sale site on the internet!
Twitter And Real Estate
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2009-12-31T10:52:00-07:002017-06-30T16:35:31-07:00Joe Manausa