Posted on Sunday, January 15, 2012
Well I will start on the demand side on the foreclosure topic. You know, folks buying up foreclosed properties to flip, rent or live. Last night at my friend’s 50th birthday party here in Naples the talked turned to real estate and among other things the foreclosure buyers. Story after story of many low priced foreclosures no longer sitting on the market but receiving multiple offers and going fast. In fact in some areas foreclosed properties are now hard to find. We reported in the spring of 2011 you could get on a plane and fly up north and hear folks talking about the foreclosed properties they bought up. Deals are still there but the tide has turned.
The numbers tell the story. Inventory is down. Naples real estate saw a lot of property bought (or in some cases taken off the market) and now the principle of supply and demand is firming up prices.
But what does the future hold with these foreclosures? One wonders about new foreclosure filings hitting the market as so many people nationwide are underwater in their mortgages and you wonder about the rest of the nation’s banks shadow inventory. Let’s look at filings first.
Three days ago CNN money reported Realtytrac findings “Foreclosure filings and repossessions fell to their lowest level since 2007 last year. Total filings of default notices, scheduled auctions and bank repossessions were down 33% for the year to 2.7 million, according to RealtyTrac, the online marketer of foreclosed properties. One in every 69 homes had at least one foreclosure filing during the year, while 804,000 homes were repossessed. That’s a significant improvement from the peaks reached in 2010 — when one in every 45 households received a foreclosure filing and 1.05 million homes were repossessed — and the lowest levels seen since 2007, the report said.”
Ok that is good news – fewer filings. But what about shadow inventory? You know the properties sitting on the bank’s balance sheets Well talk to a banker – most banks have the problem to some degree. The loans may be performing but the owners are underwater. Most banks have set reserves but the eventual sale and roll out of these properties one day might hurt the market. So problems are still in the shadows in all probability. But the good news – these properties are still in the shadow and not in the active buy-sell market and if the properties are coming out into the the market Naples Florida real estate is doing a fine job absorbing it.
Why? Inventory is down. Prices are up. Volume is increasing slightly. Good so far.
No legal or investment advice or suggestions are being given in this Blog. Actual real estate price and sales results are subject to market forces and are not completely predictable. Please consult a lawyer or investment advisor for such legal and investment advice. The writings of this Blog are intended for the sole use of our clients.
Mark Goebel, PA is a REALTOR with Coldwell Banker on 5th avenue in Naples, Florida with 35+ years of visiting and living in Naples. After 25 years at Accenture, Mark retired as a managing director and spends his time helping non profits and building a Naples real estate team with his wife Nan. Talk to Mark and Nan about life in Naples and why they chose this place to live full-time over all others and enjoy Naples real estate.
Mark Goebel, PA
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