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Have Foreclosures Really Decreased in Our Area?
May 30th, 2014 11:25 PM
While the number of foreclosures in High Country Association of REALTORS MLS has been running for several months about 30-60% off its high mark of 100 foreclosed homes listed for sale during the recession, there may be more waves of foreclosures working through the process.

I do reports and inspections for banks and asset management companies who want a quick summary of the condition of properties they may have to take back in foreclosure.  Some of these reports are called broker price opinions and they consist of an onsite observation of the property and the neighborhood. Information about sales, listings and the local real estate market are included in these reports.  

About two months ago the requests for broker price opinions skyrocketed in my InBox. It was as if the flood gates had opened and the 'held back inventory' of pre-foreclosed property was released to work through the process.

One broker in our area told me recently she did 25 broker price opinions in one week and was set to do another 25 BPOs the next week.  

While other areas may be truly trending downward with their foreclosure inventory our area may not see the number of foreclosures drop dramatically for a while.  We were slow to enter the recession and it appears in our real estate market we will be slow to exit the recession. In our pre-recession real estate market there were essentially NO foreclosures listed for sale in MLS but on very rare occasion. 

Currently, as soon as the inventory of foreclosures in MLS increases many of these bargain priced homes go under contract and then the REO inventory decreases for a while until the next wave of foreclosures works their way through the process and are listed for sale.

Our market is not an REO(Real Estate Owned by Lenders) driven market, as foreclosed sales only account for around 10%, on average, of total sales in the past few years of the recession. However, in the past 12 months foreclosures accounted for 14% of all home sales in our local MLS. 

 



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Posted by Robbie Sharrett on May 30th, 2014 11:25 PMPost a Comment

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