The latest update to the Tallahassee Foreclosure Report showed a positive trend is occurring in the distressed properties segment of the Tallahassee real estate market.
We continually monitor the status of lis pendens filings and Tallahassee foreclosures, and we track the trend of the ratio between filings and foreclosure sales. Historically, 11% of lis pendens filed actually made it through the entire court system and ended up in a foreclosure sale at the Leon County Courthouse.
Today however, the trend has skyrocketed to 37% and I suspect we are only going to see this number go higher. When we look at the real estate graph below, the green bars measure the one year trend of lis pendens filings, the red bars measure the one year trend of foreclosure sales, while the blue line measures the ratio between the two.
Positive News Regarding Tallahassee Foreclosures
The positive news is that the reason the ratio is climbing so fast is because the trend of lis pendens filings has been continuously dropping for the past six months. Even though more and more homes are moving forward to foreclosure sales, fewer and fewer new foreclosure actions are being initiated by the lenders.
Ultimately, this could be a sign that things are improving as fewer and fewer homeowners in Tallahassee are moving to delinquent status with their home loans. Also, banks were not getting the job done on moving forward with foreclosures once they had filed with the courts, and our growing shadow inventory.
We will continue with this report next week by taking a much closer look into foreclosures and lis pendens in Tallahassee. It is obvious that a significant change is looming and hopefully we will see the Tallahassee real estate market commit to the positive direction indicated in this preliminary foreclosure report.
Joe Manausa, MBA is a 26 year veteran of real estate brokerage in Tallahassee, Florida and has owned and managed his own company since 1992. He is a daily blogger with content that focuses on real estate analytics and providing his clients with a tactical advantage in today's challenging market.