Residential foreclosures have been a wild ride in NW Florida. Peaking in 2009, the total number of foreclosures has been decreasing since mid 2010 and the overall number of distressed properties for sale has also been in decline.
If you are looking for properties here in the Destin or Pensacola real estate markets you will find that some areas have few or no foreclosures available. As you can see below, foreclosures are in short supply for Okaloosa Island, Navarre Beach, Gulf Breeze Proper, Pensacola Beach and Perdido Key. Foreclosures in our market area are most likely to be found away from upscale neighborhoods.
So how does price affect the chance of a house being listed for sale as a foreclosure? When you look at available foreclosures by county the numbers vary a little but the average is 7.8%. One thing the over-all averages do not show you is which price segments of the market are most affected. 53% of foreclosed properties selling in our market are listed under $100,000. Properties in this price range make up only 18% of all properties for sale. There is clearly a disproportionate number of foreclosures affecting properties listed under $100,000.
Escambia County: 68% of all foreclosures are under $100k
Santa Rosa County: 50% of all foreclosures are under $100k
Okaloosa County: 42% of all foreclosures are under $100k
Another way to look at this is that only 4% of local properties listed over $100,000 are foreclosed properties, while foreclosures make up 22.6% of the properties listed under 100K.
Today's foreclosures are listed at market price. Banks commission an appraisal or hire real estate agents to determine a suitable sale price for the property through a “Broker Price Opinion” prior to foreclosures being listed for sale. The lender knows what the property should sell for in today’s market and is getting market value for these homes. As foreclosed and short sale properties decrease, the number of non distressed sales increase.
The best opportunity for buyers in today's real estate market may not be a distressed property at all. Buyers need to start looking at homes that are priced to sell and be prepared to move quickly on these opportunities. This is particularly true for those looking for luxury and beach homes.