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 Tallahassee
During 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 Weekly Special Report, 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...
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 distressed properties for sale in Tallahassee at the bottom of this report.
Tallahassee Foreclosure Reports
Our past foreclosure reports gave lists of homes that had been served with foreclosure documents. We showed these...
When we look at the number of foreclosures in Tallahassee, 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...
If you are interested in purchasing residential real estate in Tallahassee, you find that more than one in every five homes for sale is listed as a distressed property.
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 ...
The number of distressed properties in Tallahassee is finally on a healthy decline, perhaps a sign that a healthy rate of real estate appreciation 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.
Distressed 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 short sales, foreclosures, pre-foreclosures, and bank owned properties, 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...
Even 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 distressed homes for sale 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...
Though 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 find distressed properties 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 distressed properties...
If you are planning on buying a home in 2015, you should expect to see fewer distressed properties for sale 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...