Attom (a Real Estate data provider) indicated that in the third quarter of 2016 foreclosures had dropped 13% month to month and 24% year to year. This is the lowest foreclosure level in over a decade-December 2005, and is now back to pre-crisis level in September.
The lower the foreclosure levels the better for sellers. This is because there will be less foreclosures (which are normally priced aggressively) available on the market so the rule of supply and demand dictates that home prices should rise.
There has been a year after year decrease in foreclosure time lines (time it takes to foreclose on a property from beginning to end). This is first time this has been seen since Attom started tracking foreclosure time lines since the first quarter of 2007. The national average foreclosure time line is currently 625 days which is down from 631 days in the previous quarter.
Florida remains one of the top 5 states for foreclosure time lines. Here are the top 5 states:
STATES WITH HIGHEST FORECLOSURE TIMELINES
Jersey 1,262 days
Hawaii 1,241 days
New York 1,070 days
Florida 1038 days
5. Illinois 942 days
A decrease in the average foreclosure time line gave the banks time to catch up on past foreclosures and are allowing banks to focus more attention and man-power on more recent foreclosures. This turnover increase is starting to causing the foreclosure rate (amount of foreclosure there are in a particular area in foreclosure). Florida was #2 of the U.S. and is now #5 with 1 in out of every 950 homes. Here are the states that top the foreclosure rate list:
STATES WITH THE HIGHEST FORECLOSURE RATES:
Delaware (1 out of every 680 homes)
New Jersey (1 out of every 691 homes)
Nevada (1 out of every 899 homes)
Illinois (1 out of every 946 homes)
Florida (1 out of every 950 homes)
When looking at foreclosure rates in large metro areas (200,000+ residents), Florida has 2 cities in the top 5.
CITIES WITH THE HIGHEST FORECLOSURE RATES:
#1 Atlantic City
#2 Columbia S.C. #4. Tampa- St. Petersburg (1 out of 710 homes)
#5. Jacksonville (1 out of 722 homes)
3rd party investors were the majority of the buyers purchasing 44% (of which 38% were institutional investors that purchased 10 or more foreclosures) of the foreclosure inventory. The bulk (56%) of foreclosures went back to the financial institutions.
My thoughts for Flagler County is that foreclosures are far and few between since the bulk of the foreclosures have already been purchased. Foreclosures are now slowly dripping into the market and I think this will remain the same for any near future. The low foreclosure rate in turn with the low amount of available inventory has definitely created more of a seller's market. There are still a lot of good deals for buyers but who knows for how long... Never the less, lets not fool ourselves and think that prices are going to start skyrocketing like the 2004-2008 years. For now, I feel prices are probably close to the peak of its plateau here in Flagler County. Prices may go up and down slightly but I think it will be a while before anything dramatic happens.
If you have any questions or want to discuss this topic further please contact me anytime. I hope you are having just a gorgeous day and always remember:
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