It was front page news that the number of foreclosures filings here in Manatee County has had 5687 foreclosure filings to date this year, which is an increase from last year. This is a lot of homes and as an active agent it made me wonder where are all the bank owned inventory?
- There are 4696 total active residential listings as of this evening (11/22/09). 474 "normal" are pending
- There are 149 active bank owned homes 123 pending
- There are 920 short sales active there are 940 pending
The Statistics show two big things.
- The action is happening on bank owned, and short sale homes. You can clearly see that there is almost the same amount of pending listing vs. active in the short sale/bank owned categories. The conventional sellers have only about 10 to 1 that are pending.
- If there are almost 6000 homes that have entered foreclosure WHY is there less than 300 active and pending bank owned properties
Factor in that there are foreclosure filings from prior years that have not been completed. Many foreclosures I am aware had a foreclosure filing well over a year ago and have not gone to auction.
Also, some of foreclosure filings that are also homes that are currently listed as short sales.
Some of the foreclosure filings can also be filed from second position lien holder,s and homeowner associations that have a low probability of actually forcing a sale. These type of filings maybe inflating the numbers somewhat.
So there are under 2000 homes short sale homes, active and under contract. This means that there are around 4000 homeowners that are either attempting a loan modification, or have given up on either a short sale, or some type of work out solution.
I would estimate that if there are 2000 homeowners short selling, than there is at least that many attempting or considering a loan modification.
Activity in Manatee County has significantly increased in the past few months. Prices have continued to drop except in the 200,000 and under market where prices have leveled. Multiple offers are much more common for bank owned homes.
Why is there only 5% of the total inventory bank owned when there is more homes in foreclosure than all active and pending sales on our local MLS?
1. The slow pace of foreclosures is due to the flood of files, and the increasing willingness for lenders to agree to short sales, and loan modifications.
2, Anyone that has a bunch of inventory to sell realizes that if they flood the market it will drive down prices.
I am hopeful that the lien holders will come to realize it is better to keep homeowners that want to stay in their home if at all possible. Less inventory will create price stability.
The question remains when will all those foreclosures will come on the market? I guess it is really in the lien holder's hands.
Thanks,Joseph C Murphy P.A.