Distress Home Sales Growing
If you had a chance to see a recent Tallahassee Real Estate Blog, Distress Home Sales Dominating Market, then you know that roughly 1 in 3 homes sold this year have been distress home sales.
Historically, less than 2% of homes that sell are typically distress homes, so you can be sure that our current level is far from typical. Some markets around the country are experiencing levels in excess of 75%, and I believe Tallahassee is heading in that direction. If you look back, a recent blog post that we did covered our forecast for the next 3 to 5 years.
Defining Distress Sales
Since this term is showing up so often in our reports (and other national reports), I figured it might be good to demonstrate the current break-down of distress home sales in Tallahassee.
The graph above shows that lease-purchase sales have been the top solution for distress properties, but foreclosures and short sales are growing every single day. We can expect these two categories to continue to consume much of the distress property “pie.”