RealtyTrac reports today that the number of foreclosure filings in August jumped 36% since July in the US. That is more than double from the same time last year.
Florida was one of 3 states that had the highest foreclosure rates, according to their research. Our foreclosure filings were up 77% from July's total. We had 33,932 foreclosure filings! For us, that means that we had one foreclosure filing for every 243 households.
This research confirms what Realtors have been forecasting for weeks. Unfortunately, we are continuing to see the fallout from sub-prime loans. Also, the number of homes for sale are increasing at an alarming rate, meaning that we have over 18 months of inventory in the Orlando area (6 months of inventory gives us an equal buyer/seller market).
As I look at properties for sale in the newspaper, I can immediately tell you which properties are overpriced---be careful about choosing a Realtor in this market who is telling you about the price you want to hear when listing your property. If you have to sell, choose a real estate consultant that is going to tell you the truth. Going with the person who will list your house for the most money may result in your property sitting for over a year on the market. Hire someone that will explain that you have to stay ahead of the curve.
Unfortunately, this trend is only getting worse, not better. When will we hit the bottom? We won't know that until that time has passed......
