After a Volatile Year of Foreclosures Looking Forward to a New Year
After a year where over 1,000 properties a month were foreclosed upon in Palm Beach County the real estate market snapped them up and we end the year with some of the lowest inventory numbers we have seen in a very long time. Prices were once again down with a study out by Zillow reporting that homeowners in the United States lost another $681 billion in home value this year. That number equates to just over $6,500 for each of the 104 million homes in the country.
The good news is by most accounts we have certainly seen the worst and things in many market segments are looking down right bullish. The big question still hanging over our heads is how much shadow inventory is there and is it really going to have that big of an effect moving forward. I really believe the strength of the economy, control of our debt and job creation hold much more important roles in the future of real estate.
We are bringing you a special 12 month trend chart of foreclosures in Palm Beach County this week and you will see that while numbers were much higher the first part of the year with a very significant decline in the numbers mid year with a significant pick up again in the 4th quarter. This week, the actual foreclosure auction numbers increased for the third week in a row this time by just 2 units to 263 from 261 the previous week. With shortened holiday weeks and a general slowdown this time of year we expect more volatility and probably lower weekly numbers as we work our way into 2012. In fact two of the next three weeks will also bring shortened auction schedules so watch for the volatility to remain with us for a while.
The success rate of third party bidders continues to amaze and I scratch my head weekly as I see decisions that lenders make when bidding at these auctions. While this week the third party bidders had another excellent showing winning 15.59% of all auctions we fell way short of last weeks record level of 23.75%. This still is the 7th straight week where those numbers have exceeded 15%. Compare this to how things were earlier in the year. In fact only twice from January 1st through August 1st did we see weekly numbers rise above the 15% threshold. Watch these numbers as they are unprecedented and show that the appetite for real estate investors in Florida has never been stronger.
Here at “Results Driven Real Estate” we are passionate about the market and love assisting each one of our clients achieve their real estate goals. If we can ever be of help in any way with your needs throughout Palm Beach and Martin Counties please feel free to contact Tom at 561 308-0175 or via e-mail at firstname.lastname@example.org. It would be my sincere honor to work with you!
Tom Priester e-PRO
“Results Driven Real Estate”
Keller Williams Realty