Sunday, August 28, 2011

After the storm

Last week RealtyTrac published it's findings about foreclosure and distressed sales for the second quarter of 2011. According to their release, "sales of homes that were in some stage of foreclosure or bank owned accounted for 31 percent of all U.S. residential sales in the second quarter of 2011, down from nearly 36 percent of all sales in the first quarter." In Florida the number was 35% of all second quarter home sales trailing six other states. Highest level of distressed sales was Nevada with a whopping 65% followed by Arizona 57%, California 51%, Michigan 41%, Georgia 38%, and Colorado 36%. Florida at 35% was just one percent more than Michigan at 34%.

Looking at the MLS data for Cocoa Beach and Cape Canaveral, 26% of all Q2 sales of residential properties were distressed putting us in the same range as Virginia and Washington state. As of this morning August 28, distressed properties make up just 14% of total MLS residential inventory in the two cities.

My numbers for our market, because I've used only the MLS data, are probably slightly different than the numbers would be using the RealtyTrac methodology. However, because I suspect that private, non-MLS sales are probably skewed more towards non-distressed sales than the other way, my numbers may actually overstate distressed activity as a percentage of total sales. Because they do contain the lion's share of sales I trust that they reflect the local reality. Draw your own conclusions.

I hope all of you in the Northeast make it through Irene unscathed with no residuals except a good story. Most of us here are moving a little slower this morning after two days of epic surf. Stay safe.

One machine can do the work of fifty ordinary men. No machine can do the work of one extraordinary man. __Elbert Hubbard