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November 18th, 2010 1:04 PM by David W. Welch
Inventory of active listings at 15,303 seems to have stopped dropping as banks begin to bring foreclosures back into the market. For about a month the number of bank owned properties fell to around 1,700. Since we hit that level it appears to have struck a balance. When several large banks announced self imposed moratoriums on foreclosure back at the beginning of October, we saw hundreds of bank owned properties being pulled from the market. Prior to this happening, the number of active foreclosures seemed to hover right around 2,200. While the number remained fairly consistent the market for foreclosures was quite active with typically about 1,000 closing each month. We were literally in a balance of supply and demand with fairly stable supply and a fairly predictable number of closings each month.
Pending sales contracts have also fallen, but so much. There are currently 9,032 properties under contract, and distressed properties continue to dominate this segment of our market. Of the properties under contract, 7,779 or 86.1% are either bank owned or short sales. Closed sales however have dropped off the summer highs. So far in November there have been 868 sales posted with a median sales price of about $106,000. Prior to the latest foreclosure mess, bank owned properties accounted for about 50% of each months closed sales. That percentage has dropped with only 324 or 37.3% of the sales so far coming from bank owned properties. Short sales account for 233 or 26.8% and equity sales have made up 311 or 35.8% of the sales reported so far this month. I expect given the current pace of the sales that have closed to see a month very much like October with 1,800 to 1,900 sales with a median sales price around $105,000. Of course, every time I try to predict this it seems something happens. Last month banks stopped foreclosures and dumped a bunch of inexpensive short sales driving the number of sales and prices lower than my expectations.
David Welch Real Estate Optimist, Orlando Real Estate