Based on the latest monthly Realtors® Confidence Index, there has been a leveling off at the MLS sales level in the sale of distressed properties in recent months.
Palm Coast, FL – November 2, 2011 – Based on the latest monthly Realtors® Confidence Index, which summarizes the responses of over 3,600 Realtors® to a monthly market survey, there has been a leveling off at the MLS sales level in the sale of distressed properties in recent months.
What does this mean for Realtors®? The press has been publicizing the potential for continued declines in the real estate markets. However, approximately three years’ worth of data indicates that distressed sales have leveled off in the 30 to 35 percent range in the real estate markets. This suggests that financial institutions are feeding the properties into the market on a relatively constant basis, and given current economic conditions no great surge of shadow inventories has appeared. The good news is that the markets are clearing the properties and that additional price pressures from a surge of shadow inventories does not appear likely. The bad news is that the problem appears likely to be with us for the next two to three years, suggesting that future price appreciation may be slow.
Source: National Association of Realtors®
Toby’s Commentary: The percentage of homes sold through MLS in the Palm Coast market has remained consistently within a narrow range slightly above 50 percent. Like the national market, it is stable with buyers in the wings willing to pick up new distressed properties as they come onto the market.