Tallahassee Lis Pendens Filings September, 2008
Yesterday's real estate blog article on the $700B Government bailout of the financial markets created some good discussion. The article focused on why it was critical to the United States that we do the bailout, but it did not go into great detail as to how we ended up in this position.
There has been a great cartoon-style presentation roaming around the email system for the past year that does a humorously great job explaining how we got here. It is unsigned, so we will just give credit to "Author Unknown." Please note that if you receive this through email, most of the blog will be missing. I strongly recommend that you click-through (click on the title of this message) to the actual blog site so that you can enjoy the long, but excellent cartoon...
Today's Tallahassee real estate blog is going to be completely different than most our readers have come to expect. I will summarize a letter that I received from Jay Hill of Hill Commercial Capital, explaining in layman's terms why the big bailout must occur. I respect Jay's intellect and insight in the money markets and I think our readers have much to gain from his view.
In order to understand the mess the credit markets are in, one must understand how the tier of banks exist in our country. They are:...!--more-->
This is the final "installment" on a three part blog series that was dedicated to predicting home sales in the real estate market for 2009 and beyond. Readers have provided great feedback and it has been a good discussion.
Only time will tell if there truly is a measurable correlation between homes sales and population. Again, we must believe that in most cases, heavily populated areas will have more home sales than less populated areas. By tracking this ratio over time, we can create a graph that is similar to this:...!--more-->
Having posted my real estate blog article on predicting future home sales, I am encouraged to see the great feedback that readers are providing. For the most part, it appears that readers accept the notion that homes sales correlate to population and population change. However, there are some great points made by readers which challenge the veracity of the model. So today we'll take a look at the feedback and see if we can't further the discussion / exploration of a model that will help us anticipate the number of home sales in Tallahassee for the coming years.
We received some great feedback from yesterdays ...!--more-->
Today is the big day. Today, September 24, 2008, in this real estate blog, I reveal my "prediction" for the real estate market in the coming years. I invite your criticism, support, arguments, and/or feedback in any capacity. You see, I have developed a theory that there is a measurable correlation between population and home sales, and that both can be measured and the results used as a "guide" to determine the direction that the real estate market is seeking.
Having just experienced the toughest year in real estate brokerage since before 1991, my thoughts have already turned to 2009 and beyond, wondering what the future has in store for this battered real estate market. As the eternal optimist, an old, favorite John Dryden quotes comes to mind "Fight on, my merry men all, I'm a little wounded, but I am not slain; I will lay me down for to bleed a while, Then I'll rise and fight with you again."
While home prices have remained relatively strong, the number of home sales in Tallahassee has dropped to a level not seen since prior to 1991. Why is 1991 my "beginning point?" That is the year that I entered the Tallahassee real estate market and therefore do not have data prior to that point.
We continue to monitor the housing inventory movement in order to have an idea of the direction of the real estate market. Anybody who wants to know "How is the housing market" really should be looking at the movement of inventory. If housing inventory is dropping, we know that eventually demand will outrace supply, and we will see prices moving up again in the housing market. The contrary has been true for quite some time now, seeing inventories grow in the Tallahassee real estate market for the past two years.
Perhaps the most exciting thing that I can report this week is that the inventory of homes for sale in Tallahassee continues to drop. The short term trend (orange line) for inventory of Tallahassee...!--more-->
One great improvement that we have been seeing at the Tallahassee Real Estate Blog is feedback from our readers. Yesterday, "Steve" wrote such a great comment that I decided to feature it as today's post, as it contains great information on the subject of real estate foreclosures. Here is what "Steve" had to say:
As you explained, most Lis Pendens filings do not result immediate foreclosures.
Traditionally this happened because: (1) The borrower found a way to make their mortgage current, (2) The borrower had enough equity to make a quick sale and pay off the morgage, or (3) The lender accepted a Deed In Lieu of Foreclosure.
However, that’s not what’s going on right now. The vast majority of LPs...!--more-->
With all the national talk about foreclosures getting louder this year, we decided to start tracking foreclosures in Tallahassee. The first thing that we discovered is that not all foreclosures are alike, so we have some explaining to do first.
When somebody has been late on payments on a loan secured by real property, the lender can utilize a legal proceeding called a foreclosure in order to sell or repossess the property with the goal of satisfying the lien.
The first step in the foreclosure in Florida is the public filing of a "Lis Pendens" in the courts. The lender is not required to notify the borrower of the beginning of the foreclosure process, but the borrower most likely "sees it coming" as typically no payment has been made for some time.