Fannie Mae and Freddie Mac Own More Than 180,000 Foreclosures
Our clients ask us every day if the market has hit bottom and how many more foreclosures will there be on the horizon. The truth is, the Emerald Coast has sold a significant number of REOs or Bank Owned Property since 2009. In fact, 4,830 residential REOs have been sold since 2009 for both the Bay County and Emerald Coast MLS. Our local inventory of foreclosures and REOs is dwindling.
Fannie Mae and Freddie Mac hold 122,616 and 60,000 REOs which is over 180,000! This is a staggering number. Over 50% of these REOs are owned by eight states: Arizona, California, Florida, Nevada, Illinois, Indiana, Michigan and Ohio. Fannie Mae sold more than 58,000 REOs in the third quarter of 2011. This seems like a massive number, but it is 18% below Q2 2011′s sales volume. At the current rate of sales, Freddie Mac holds 15 years of inventory and Fannie Mae holds nearly 4 years. The grim news is that Fannie and Freddie are currently taking in more REOs than they are selling. Delays from mortgage servicing troubles, new foreclosure regulations and state laws, such as the one in Nevada making it a felony to robo-sign affidavits, is pushing the foreclosure timeline out to a national average of two years.
All of the foreclosure delays, rumors of massive shadow inventory and an impending deluge of new foreclosures makes the real estate market look uncertain at the nation level. Locally, I believe we are 12 to 18 months ahead of the national average on our recovery. We have burned through much of our foreclosure inventory. There are subdivisions and condo projects where almost all of the distressed inventory is gone and off the books. This is great news and a good sign to our market recovery.
Construction starts in Walton County are on the rise with new construction along 30A increasing significantly in WaterColor, WaterSound, Rosemary Beach and Seacrest Beach. If 2011 was an indication of the road ahead, I believe it is a positive one. Real Estate on both the low end and high end is flying off the shelves. Inventory is down and construction demand is up. We are looking forward to a strong finish to 2011 and a very promising 2012.
30A REOs and Bank Owned Property
Destin, Sandestin, Miramar Beach Foreclosures
Panama City Beach Bank Owned Property
REO and Foreclosure HOT SHEET
Emerald Coast MLS REOs SOLD since January 2009 to November 15th 2011
- 2,446 Sold Combined Residential REOs SOLD
- 580 Bank Owned Residential Land SOLD
Panama City MLS REOs SOLD since January 2009 to November 15th 2011
- 1,583 Sold Combined Residential REOs SOLD
- 221 Bank Owned Residential Land SOLD
“Only 100 houses sold in Bay County in October and 205 were listed. I am not sure that qualifies as”flying off the shelf”.
Hi Sherry – That is a great point. When I sift through the data I always base my opinion on marketable and non-marketable properties. We still have a glut of properties that are not marketable in this environment…which means they are priced too high. For example, we have 2 bed with bunk gulf front condos at Calypso selling in the $270K to $305K range. However, there are a few marketed at $435K and up to $500K+. To me this is junk inventory that is not marketable. This inventory will never fly off the shelves. However, properly priced real estate is selling faster than we can market them…and to me that is flying off the shelves.
- Craig B.