Foreclosures, Short Sales, and Market Activity in 2011

There has been loads of discussion recently, including articles in the newspaper with regards to the number of foreclosures and distressed sales in the Greater Daytona Beach Area. The local MLS records over 3,000 sales in the first eight months of 2011. During that time there has been a relative consistent improvement in the absolute number of sales as the year has progressed. That data is consistent with information that shows that the number of sales transactions has continued to increase since 2008. Broken down by month, it appears as though the number of homes sold by banks has decreased in general, while the number of short sales and traditional sales has increased.  This is inline with a prediction we made in May of this year regarding the trend of foreclosures vs. short sales.

The information is more apparent when examined as a percentage of total sales for the month (the second chart). In the beginning of the year foreclosures accounted for well over one third of all transactions while traditional sales amounted to less than one third. As we reach August, foreclosures are hovering well below one forth of sales and traditional sales are will into the majority with over 60% of for five consecutive months.

As supply continues to shrink and demand increases we are seeing the effects on the local market. Coupled with the opportunities today that consumers have for short sales and loan modifications, the real estate market continues to improve.