Sarasota MLS Inventory is Way Down (North Port, Palm Beach: bank owned, short sales, real estate market)

[bbronston]

For those who don't know, the Sarasota Association of Realtors puts out a monthly analysis of the previous month's activity and then tries to put that information into perspective compared to previous months and years. I think the most interesting tidbit is that the total available property inventory dropped to 5,010 for May, a big decrease from April's level of 5,258, and once again the lowest level in the past six years. The inventory reached its apex in April 2007, when 17,089 properties were on the market.

Complete report and stats: http://www.sarasotarealtors.com/file...1061413528.pdf

[Big House]

Originally Posted by bbronston

For those who don't know, the Sarasota Association of Realtors puts out a monthly analysis of the previous month's activity and then tries to put that information into perspective compared to previous months and years. I think the most interesting tidbit is that the total available property inventory dropped to 5,010 for May, a big decrease from April's level of 5,258, and once again the lowest level in the past six years. The inventory reached its apex in April 2007, when 17,089 properties were on the market.

Complete report and stats: http://www.sarasotarealtors.com/file...1061413528.pdf

I think it will remain low for the next 6 months as well. Now, this means there are going to be some tough belt tightening for everyone in the real estate market while the market makes it through the on-coming adjustments. It will likely be very difficult for many people out there.

[SoFLGal]

The inventory is getting very low. I have many people who can't find what are looking for and are electing the build. We are starting to see prices inch up slightly in many areas.

The inventory of single family homes in North Port has been hovering at 600 for a year or two. It's now down to 436 and dropping pretty fast each day.

There are very few bank owned homes going on the market as well. I mentioned this on a different thread a few days ago and I'll mention it here as well. I spoke with many, many banks a few days ago and they all said that there will be no "big dump" of properties toward the end of the year. They tell me that they just don't have the judges, attorneys, asset manages, etc to deal with something like that. They say that the properties will continue to trickle out at the pace they've been--maybe slower. I think that remains to be seen.

[loves2read]

how much of that reduction is because BoA and some other banks/mortgage companies are in hot water with the Feds over how they screwed the pooch on foreclosures in the past

voluntarily withdrawing or withholding eligible properties from the market is not the same as not having any to put IN the market

[SoFLGal]

Originally Posted by loves2read

how much of that reduction is because BoA and some other banks/mortgage companies are in hot water with the Feds over how they screwed the pooch on foreclosures in the past

voluntarily withdrawing or withholding eligible properties from the market is not the same as not having any to put IN the market

From what I understand and from looking at the upcoming reports it looks like right now there aren't many properties coming on. Not because they are withholding them, there just aren't very many currently.

What I was speaking of is the anticipation of a large amount of properties toward the end of the year. They say they can only work through them at a certain pace and have the manpower to deal with them. I know they can handle way more properties then what is currently coming on and from my work list it looks like at least through August there's not going to be a lot of bank owned homes coming on.

I think there's a lot of contributing factors to the slow down. One of the biggest, IMO is still all the properties tied up with the robo signing debacle.

So, here's the way I see it. Right now they are putting all of the properties on the market that they are getting. At the and of the year there might be some kind of "hold back". It's hard to tell until we get closer to that period. Probably by August I should have more answers out of my asset managers at the banks.

Again, this is just chatter but it seems to be somewhat accurate looking at my upcoming job list. By no means do I think we're out of the woods, yet though.

Here's an article that ran this morning:
Real estate sales remain strong in Sarasota as prices rise | June 14, 2011 | Michael Braga | Inside Real Estate Inside Real Estate

Just noticed this is what BB posted above. Looks like the Herald just reposted it

[Col.W.Deering]

We're waiting patiently, like the experts on here advised. Would like to find the perfect home for us now, but ahh well....

[SoFLGal]

I belong to a Facebook chat group for local Realtors who list bank owned properties in the area. It's kind of a think tank and place for everyone to chat. Thought this was kind of an interesting comment posted today by one of the local Realtors:

So, out of curiosity, I asked my bank asset manager today if they were experiencing this enthusiasm across the state for vacant lots, or if it was just this area, (he covers the whole state of Florida for lots) and was told that it WAS mainly this area and the immediate surrounding areas that has had the most offers on vacant lots across the state.

Funny thing is we have the person buying up all of her bank owned lots. Our buyer is purchasing them and turning right around and selling them for more money.

[Sunshine Rules]

As of March of 2011, a reported 322,724 foreclosure cases were backlogged in the FL courts system, with over 9% of the FL foreclosure cases in Palm Beach county. I read an article this week in which the Palm Beach county courts have stated they will stop hearing foreclosure trials as of July 1st of this year due to lack of funds. The state legislature appropriated additional funds for 2010 to help county courts cover the additional costs associated with the huge number of foreclosure cases, but they failed to provide additional funds this year.

Foreclosure cases in FL are now taking an average of 619 days from start to finish, up from 470 days last year and nearly four times the average of 169 days it took in 2007, according to a recent report from RealtyTrac.

There is also an increase in the number of loans in foreclosure that are being pulled from the dockets because the lender cannot produce the required promissory note. Judges are now saying no note, no foreclosure. The lenders are then forced to go back and attempt to negotiate loan modifications, allow a short sale, or as in the case of a home in my subdivision, the borrower is basically living in the home for free as the bank can't find the note and the borrower refuses to cooperate with the bank on a modification or short sale. The bank is paying the property taxes and insurance on the home, and we other homeowners are covering the cost of the delinquent HOA fees.

If the courts cannot afford to process the foreclosures, then we may see short sales coming more into play as a means to clear out the backlog. Which brings me to Bank of America's and Wells Fargo's new short sale addendums. But that's a can of worms to open in another post.

[SoFLGal]

Here's a letter from David Stern's office who was in the middle of the robo signing mess to the head judge in Sarasota county dealing with the foreclosures, Judge Hayworth. I think this is part of what my asset managers are referring to.

[SoFLGal]

Here's another article that pretty much says what I was saying above. They're coming through but not in large numbers right now. These articles back up what the asset managers have been saying to me. Basically, they don't have the staff to handle a huge amount of cases. They are carefully reviewing each case so they don't get tagged again:

Courts still clogged with foreclosure cases - WWSB ABC 7 Florida (http://www.mysuncoast.com/news/local/story/Courts-still-clogged-with-foreclosure-cases/CxP9HOyJSkKj95FGzyNdiQ.cspx - broken link)

Last year the state legislature tried to help clear the backlog. It gave the 12th Circuit Court $212,000 just for foreclosures. “With that money we had four case managers and recalled three senior judges dedicated solely to foreclosure reduction assistance,” says Judge Haworth.

But that money runs out in June. Judge Haworth's court still has 17,000 cases unresolved. Meanwhile, the legislature is taking a hatchet to the budget. Among all the state's needs, how does money for a foreclosure court fit?

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And yet another article quoting Haworth: http://www.mysuncoast.com/mostpopular/story/Is-dip-in-foreclosure-rates-a-sign-of-improved/AGf7MYsqFkysMDqQifsaVw.cspx (broken link)

Foreclosure rates dropped dramatically in Florida last month. Could this mark a turnaround in the Suncoast real estate market?

But don't get too excited, says Judge Lee Haworth. “We're in this pause period. We expect a new wave of foreclosures.”

Haworth, the chief judge of the 12th Circuit Court, which handles most Suncoast foreclosure cases, says the weather looks good in the eye of a hurricane too. The storm is not over, merely interrupted by paperwork problems. “New attorneys are on the cases, and they're taking more time.”

But Florida has improved, compared to other states. Last year the top 20 metropolitan areas in the country for foreclosures included nine from Florida. So far this year, the state has none of the top twenty.

Robbins believes the market has reached its bottom, but that her profession for 37 years remains a challenge. “It's much harder now and more work than it was a few years ago.”

Judge Haworth says that the next wave of foreclosures could get worse if state money that pays for three senior judges devoted just to foreclosure cases runs out as scheduled in June. He says there's a backlog now of 17,000 cases -- and that's with the extra help.

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And here's the article quoted by SunshineRules: http://www.usatoday.com/MONEY/usaedi...sures_ST_U.htm

Florida foreclosures averaged 619 days in the first quarter vs. 470 a year ago. Cases stalled after some law firms' foreclosure work came under investigation and replacements had to be found.

The substitutions are just "trickling in" for law firms hit by the controversy, says Circuit Court Judge Lee Haworth in Sarasota, Fla. He also suspects that new firms are "scrubbing" foreclosure paperwork more than previous firms and may be starting over on some.