Manatee County Distressed Property Market Report: A Closer Look

According to national real estate sources, about one million foreclosures that were scheduled to be filed this year, will be pushed out into 2012. Out of the total U.S residential sales, nationally, the percentage of U.S. residential distressed property sales dropped from 36% in the first quarter of 2011 to 31% in the second quarter of this year. 

Also worth noting, the sales prices of REO, bank owned, foreclosure properties has been trending down from last year's sales figures.  This is positive news for home buyers who are in a good position to take advantage of lower pricing and for real estate investors for investment opportunities, both short term with rentals and also in the long term.

Although these are national stats and observations, our local market reflects these trends as well.  Superficially, these trends, in the short term, are good in a couple of scenarios:

• for home buyers and investors: great pricing during a period of fantastic mortgage rates and a large pool of renters for investors who want to 'buy & hold' until market values rebound.
• for home sellers: The decreasing trend and numbers of foreclosure units on the market is good news if you've been toying with the idea of selling your home and have been looking for the best window of opportunity to get your home listed with an agent.  Less distressed property competition may possibly result in a higher sales price and less time on the market.  Every neighborhood differs, so contact your trusted real estate professional for an analysis of your area. 
• for home owners who are in danger of foreclosure: good news from the standpoint that you will have more time in your home and more time to negotiate with the lender for a possible resolution through loan modification or short sale before going through foreclosure.

Now for a not so positive observation. The delay in releasing a portion of the inventory of foreclosures until 2012 will cause further delay in our real estate market returning to normalcy by at least another year.  It's been such a long time since we've known a normal market though maybe we won't notice much of a difference.

Please review the Real Estate Distressed Stats Report PDF attached to this article for more detailed information.  (it's also printable)

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More resources and statistics:

Realty Trac Article

Realty Trac Video

Realtor Magazine Article