Tuesday, December 6, 2011

Bank Owned Properties (REO) much better deal than Short Sales

November 2011 statistics show that short sales sell for significantly more than REO's (Bank Owned Properties) but less than non-distressed properties.  Banks are still taking many months, sometimes years to close a short sale so buyer's must take additional costs and risks of waiting so long for a closing into consideration.  Such costs include rent and advanced inspections.  Risks include the increasing difficulty of obtaining a mortgage.  Many experts predict a banking collapse of some type and money is becoming tighter by the day so if it takes 8 months to close a short sale, one has to consider that money may not be readily available as we enter 2012.

Look at the Florida trends.  A short sale with all of it's risks and hassles sell for only slightly more than a "move-in" ready REO.  The difference is that many short sales are homes that people have not maintained because they are about ready to lose them to foreclosure so they are saving for their next move and/or they simply don't want to put money into a home that will eventually go back to the bank.  For this reason, many short sales are not move-in ready but need significant work and might better be compared to a damaged REO.

It looks like the best deals are still with bank owned inventory.   REO's are generally quick closings and you can still make good profits by rehabbing damaged REO's or you can move right in for slightly less than months of playing around with a short sale deal with a 20-25% chance of closing.   

Our advise is to not fall into the "short sale" frenzy.  Look at the "deal" not the buzz words.  For our money, we say BUY LOW.  Prices are still falling and the most important factor is to predict values 6 months from now and make sure that you are not overpaying on a property.  Short sales may be a good option but make sure that you are not paying too much for the time and hassle it takes to close them.  Unfortunately, the offer that a bank accepts on a short sale may be more than it's worth or just market value when you finally close it.  Choose an agent that is not looking to "close a deal" but is looking to "get YOU a deal".  

Housing Trends Update November 2011 

Average Property Price by Region--Year to Date 
Region 
Damaged REO 
Move-In Ready REO 
Short Sale 
Non- Distressed 
AZ & NV 
$103,693 
$172,628 
$173,993 
$251,113 
California 
$197,053 
$260,878 
$304,766 
$445,829 
Farmbelt 
$69,070 
$136,186 
$164,191 
$200,746 
Florida 
$85,503 
$150,253 
$152,788 
$247,082 
Industrial Midwest 
$61,767 
$110,342 
$140,630 
$203,928 
Northeast 
$145,983 
$290,599 
$232,255 
$333,874 
Oil Producing 
$68,044 
$154,227 
$158,555 
$206,919 
Pacific NW 
$102,588 
$236,322 
$263,515 
$331,808 
Rocky Mountain 
$152,910 
$177,458 
$194,710 
$245,737 
South 
$82,588 
$155,118 
$192,645 
$222,340 
National Average 
$100,263 
$179,581 
$201,076 
$260,515 



Thursday, February 3, 2011

Destin and Niceville Statistics 1/1/10-1/1/11

Florida real estate statistics can be analyzed in many ways to provide insight into the trends in Florida's real estate market today.  We will begin with the average sales price of sold properties for the year beginning 2010 to 2011 for the North Florida real estate market.  We will then look at longer term data as well as monthly data.

Long term data can help to predict the bottom while monthly statistics can be particularly useful  in determining when to buy and how much you should pay for a parcel of real estate in the Florida Panhandle area, specifically in the Destin and South Walton beach areas.


Destin and Niceville Single Family Home Sales
  1/1/2010 to 1/1/2011
Area # of Sales Total Sales Avg Sales Median Sales
13 Niceville 408 $109,608,563 $268,648 $249,725
14 Destin 276 $126,034,322 $456,646 $322,920
TOTALS 684 $235,642,885 $344,507 $269,95


Destin and Nicevile Condominium Sales
1/1/2010 to 1/1/2011
Area # of Sales Total Sales Avg Sales Median Sales
13 Niceville 13 $1,088,400 $83,723 $94,000
14 Destin 345 $117,942,900 $341,863 $230,000
TOTALS 358 $119,031,300 $332,489 $223,000


Destin and Niceville Residential Land Sales
1/1/2010 to 1/1/2011
Areas:13,14
Area # of Sales Total Sales Avg Sales Median Sales
13 Niceville 65 $5,667,193 $87,187 $80,000
14 Destin 43 $10,950,600 $254,665 $160,000
TOTALS 108 $16,617,793 $153,868 $90,500

Saturday, January 29, 2011

30A Sales Statistics 01/01/10 - 01/01/11

30A Condo Sales
Area # of Sales Total Sales Avg Sales Median Sales
17 South Santa Rosa Beach 72 $30,912,006 $429,333 $299,053
18 South Walton East 153 $63,724,438 $416,499 $310,000
TOTALS 225 $94,636,444 $420,606 $305,000



30A Detached Single Family Homes

Area# of SalesTotal SalesAvg SalesMedian Sales
17 South Santa Rosa Beach135$77,452,299$573,720$400,000
18 South Walton East252$203,023,991$805,650$625,000
TOTALS387$280,476,290$724,744$540,000


30A Residential Lots
Area # of Sales Total Sales Avg Sales Median Sales
17 South Santa Rosa Beach 113 $21,795,100 $192,876 $45,000
18 South Walton East 199 $48,468,261 $243,559 $151,900
TOTALS 312 $70,263,361 $225,203 $105,000