Friday, February 27, 2015

Are foreclosures still important in today's market

These days foreclosures are not making the headlines the way they were a couple of years ago.  This got me wondering what is going on in our local market so I decided to look at the numbers.

Before we go any further please understand this is a snapshot of a relatively small area of South West Florida.  These numbers may not relate to where you live or are looking to buy but I’m willing to bet if you are anywhere in Florida something similar is going on.

Anyhoo.  These statistics relate to the day this is being posted namely 27 February 2015.

Currently there are 1840 single family homes for sale in Charlotte County.  Of these only 126 or around 6% are foreclosures.  Note that single family homes represent the biggest majority of home sales in this area.

However if we look at sales for the last 6 months it turns out that of 1986 sales a total of 456 or 23% were foreclosures.

Incidentally we can also derive from these numbers that the inventory of homes for sale represents about a healthy six month supply.

However it gets more interesting if we look at homes priced below $150K which is about the median price point in our area.

Then we see that foreclosures represent 21% of the homes for sale (78 out of 365) and a whopping 36% of homes actually sold (362out of 984).  Note that the inventory is now just over 2 months indicating this is a very hot market.

Even more striking is the fact that the inventory of foreclosures priced under $150K, which sell at a rate of 60 a month is just 39 days.

Conclusion

Foreclosures still matter in Charlotte County.

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