Manatee and Sarasota Distressed Property Update November 2011
Foreclosure inventory continues to decline as does short sale inventory, both at a pace that is more rapid than the decline in overall inventory. At the end of November 2011, distressed inventory (total of bank owned and short sale listings) of homes and condominiums in Sarasota was 17% of total inventory, down from 19% this time last year. For the past 12 months, sales of distressed inventory have been 40% of sales down from 45% over the previous 12 month period.
In Manatee County the numbers are even more pronounced. Distressed inventory is now just 22% of total inventory, down nearly a fourth from the 28% last November. Sales of distressed inventory were 46% of total sales over the past 12 months compared with 48% over the previous 12 month period.
Like most things to do with real estate, foreclosure sales and inventory are not slathered equally across the all areas, as the chart below shows.
Here’s how you read the chart:
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The % of Co. Distressed represents the % of total county distressed sales and inventory occurring/present in the area. For example, during the past 12 months this year, 13% of all Sarasota County distressed sales occurred in Englewood. And, as of November 30, 2011, 18% of all Sarasota County distressed inventory listed for sale was located in Englewood.
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The % of area’s total represents the penetration of distressed property sales and inventory to the total of all sales and inventory for the area indicated. Again, looking at Englewood, distressed sales for the past 12 months accounted for 61% of all Englewood sales while distressed inventory listed for sale in Englewood accounts for 22% of all single family homes and condos listed for sale in Englewood (compared to 40% and 17% for all of Sarasota County as shown on the top line).
If you know anything about the area, it will only take seconds to see what’s happening. There is a direct relationship with property values and foreclosure concentration. Sarasota, in general, has more luxury property than Manatee County and overall, a higher average transaction size. Sarasota County also have a lower penetration of distressed sales and inventory. Within Sarasota County, the luxury areas of Longboat, downtown, and Siesta have fewer than half the penetration of distressed sales and inventory as the generally lower priced south county areas.
The same is true within Manatee County as well. Lakewood Ranch and Anna Maria Island have higher prices and fewer relative distressed sales and inventory than the rest of the county.
If the “next wave of foreclosures” is the only thing that can slow the recovery, then you should feel some relief if you own property (or are considering buying property) in one of the luxury areas. At least to date, those areas have been somewhat insulated from the entire foreclosure morass.