Number Of Short Sales And Foreclosed Homes Declining
The number of foreclosed homes and short sales continues to decline, though they still account for nearly one third of all homes sold in Tallahassee.
Our continued tracking of the distressed homes for sale in Tallahassee has yielded a report that has exceeded our expectations for 2013, and looks to continue doing so next year as well.
Short Sales And Foreclosed Homes Decline
Currently, there are 515 properties for sale that are marked as distressed in Tallahassee. Furthermore, it breaks down into 263 short sales and 252 foreclosed homes that are still for sale in the Tallahassee MLS.
When we take a look at current trends for what has sold, we find that roughly 30% of all home sales in the past year were recorded as distressed home sales.
In the real estate graph above, the number of arms length home sales each month are shown in green, while the number of distressed home sales are shown in red. The ratio of distressed homes sold to all homes sold is shown as a red line and measured on the right vertical axis. It is interesting to note that prior to 2008, distressed home sales were so uncommon that most were not even identified in the Tallahassee MLS.
The thirty percent identified above is a major chunk of the Tallahassee real estate market, and we still have thousands of homes in the shadow inventory that still need to clear through the market. This means that we can expect to see more short sales and foreclosed homes hit the market in 2014 and beyond, and hopefully they will continue to enter the market in an orderly fashion (if they all hit at once, we will see significant pricing pressure for home sellers).
With all but higher end home values on the rise, more and more home sellers will be able to enter the market in the coming years without having to short sale their home. This means we should see a continued declining trend of distressed homes as a percentage of the overall market, and soon only the highest valued homes will be dealing with an over-supply of homes for sale.
If you are thinking about buying a home in Tallahassee in the coming years, just drop me a note and we can help you evaluate the current batch of foreclosed homes as well as all the others that are currently for sale in the Tallahassee real estate market.
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