What The Recent Foreclosure Report Means For Tallahassee Housing
With the end of another quarter of home sales in Tallahassee, we have just recently updated our reports on lis pendens filings and foreclosure sales.
The trend of foreclosure sales is soaring, an unsurprising result of the past lis pendens filings that have occurred.
But a recent trend reversal on lis pendens filings is a cause for concern regarding the near future of home sales and values in Tallahassee.
Tallahassee Foreclosure Report
While it seems like bad news to hear that foreclosure sales in Tallahassee were up more than 80% versus this same month last year, the reality is that foreclosure sales are the end result of something that has already occurred.
Specifically, foreclosure sales are not news, they are merely the future result of past lis pendens filings. We knew these foreclosure sales were impending, it is the new lis pendens that we monitor for real news in the distressed properties market.
In the foreclosure graph above, each column represents and entire year of data. In red, we see new lis pendens filings while foreclosure sales are shown in blue. Currently, there are more foreclosure sales than lis pendens filings, which suggests that the market is moving through a later stage of the distressed property process. As fewer and fewer lis pendens are filed, we should see the number of foreclosure sales finally start to decline as well.
But recently, the number of lis pendens being filed each month began to rise again. This was a bit of a surprise, and it might mean that we are further from the conclusion of the housing market recovery than we first thought.
To put this into perspective, we observed roughly 1,200 new lis pendens filed over the past year, a time in which there were fewer than 4,000 homes sold. Simply put, it means every time 3 homes are sold, one begins a new foreclosure process. This is not a healthy number!
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Why You Should Study New Lis Pendens Filings
If you are happy in your home and do not plan to move, then I see no reason that you should worry about new lis pendens filings. They are going to happen and we won't be seeing them return to normal for another five years or so.
But if you plan on moving in the next few years, a study of the distressed properties will give you an advantage when deciding when and where to make your move. Since we post a list of all lis pendens in Tallahassee each month, you don't have to spend much time to stay as informed as any real estate agent in your area.
A knowledge of the foreclosures and lis pendens will give you and idea of weight of pricing pressure as a future seller, as well as an understanding of opportunities as a future home buyer. Knowledge is power, and it benefits you both when selling and during the home buying process.
If you would like to start early preparation for your next move and explore lis pendens and foreclosures with a well-trained real estate agent, just drop me a note and we can schedule a time to begin your journey.