If you have not been tracking Tallahassee foreclosure sales, then you might be missing an important trend that is occurring in the Tallahassee real estate market. You see, new filings are dropping (new lis pendens filings) while foreclosure sales are rising.
If you look at the graph on the right, the trend of lis pendens filings (green bars) continues to fall, meaning it appears as if the number of new "loans going bad," has been dropping for about 9 months. The trend of Tallahassee foreclosure sales (red bars) continues to rise, meaning it appears as if banks are pushing harder to remove bad loans from inventory. Finally, the blue line in the graph measures the ratio between the two, and we are at an all-time high of 38%.
Tallahassee Foreclosure Sales Activity
The reason that we monitor the activity of distressed properties is to get a feel for the growth or reduction in the shadow inventory in Tallahassee. We believe so strongly in monitoring this segment of the housing market that we have an entire section of our web site devoted to distressed properties in Tallahassee. The most recent reports include:
- New Lis Pendens Filings For Week+ Ending July 31, 2010
- New Lis Pendens Filings For July 2010
- New Lis Pendens Filings For 2nd Qtr 2010
We publish weekly foreclosure reports, as well as monthly, quarterly, and annual reports on site, so readers can see what neighborhoods and subdivisions are having the most problems with distressed properties.
From what we can tell, nearly all foreclosure sales are resulting in the bank being the highest bidder and taking ownership of the property at the date of the sale. This means that these are more homes that are showing up on the market as banked owned properties (REO), thus we suspect the toughest pricing pressure that we have seen in this four year bear market is really just beginning.
As banks continue their push to reduce non-performing loans, the market will receive more and more of these homes that banks do not wish to own. They will continue to drop their prices until the homes sell, making for a veritable feeding frenzy for home buyers and investors. Until the market clears itself of all of these properties, regular home sellers will find competition levels very tough.
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.