Florida Short Sale Trends
I keep track of the short sale trends because of the impact the housing bubble has had on people's lives in our area.Â What I have discovered is :
-Closed transactions for both short sales and foreclosures have stabilized in the 5-6000 per month range. This represents approximately 37 percent of all sales.
Â -Listings for short sales continue to fall significantly, while those for foreclosures are declining gradually. Part of this is due to the use of bulk sales by the Federal government, bypassing the MLS process.
- Prices for both short sales and foreclosures are trending upward, a result of the interest of investors in buying up what they see as bargain real estate.
- The shadow inventory continues to decline. Lenders have shown an increasing willingness to encourage short sales, so that they do not have to submit properties to the foreclosure process. Doing so in Florida subjects them to a lengthy judicial process, during which they incur costs of holding and managing property. I expect this decline in shadow inventory to continue.
Legislation currently in place to expedite short sales is expected to expire unless it gets thru the log jam in Washington, so keep your fingers crossed. This legislation is a good thing.