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Palm Harbor, FL Short Sale and Bank-Owned Statistics

May 20, 2010

My clients regularly ask for my professional opinion on the Tampa Bay area real estate market. Are things turning around or will prices continue to decline? Should I sell my house or attempt to find a tenant?

This week I was asked about the overall real estate market in Palm Harbor, Florida, and specifically, what percentage of homes for sale are short sales or bank-owned. So I set about to get some data for this client that I’ll now share right here for anyone interested in Palm Harbor real estate. Keep in mind that these numbers represent a snapshot in time and may not apply if you’re reading this post at a much later date.

As a general rule there is an inverse relationship between list price and percentage of short sales and bank-owned properties. As list price increase the percentage of listings that are short sales or bank-owned decreases. I’ve known this inverse relationship exists, just by virtue of being a full-time Tampa Bay Florida Realtor, but today was my first day running the numbers.

Palm Harbor, Florida Short Sale and Bank-Owned Statistics

I ran a series of MLS searches in Palm Harbor in $100,000 increments. Afterall, I’m trying to demonstrate that as price increases there are fewer and fewer financially distressed properties on the market.

$0 – $100k $101 – $200k $201 – $300k $301 – $400k
Total 12  (100%) 154  (100%) 125  (100%) 78  (100%)
Short Sales 6  (50%) 41  (27%) 19  (15.2%) 7  (8.9%)
Bank-Owned 3 (25%) 7 (4.5%) 2  (1.6%) 0  (0%)
Regular 3  (25%) 99  (64.3%) 104  (83.2%) 71  (91%)


I’ve called listings that are not short sales and not owned by banks “regular.” In real estate we often term these as “traditional sales.” The point being as price increases the percentage of homes that are financially distressed decreases. In the table above only about 25% of the Palm Harbor Florida listings priced below $100,000 are NOT in financial distress.

I actually ran the numbers for the next 4 $100,000 price increments and the trend continues to the point where there are virtually no financially distressed Palm Harbor listings at the higher end.

$401 – $500k $501 – $600k $601 – $700k $701 – $800k
Total 46 (100%) 19 (100%) 18 (100%) 4 (100%)
Short Sales 3 (6.5%) 1 (5.3%) 2 (11%) 0 (0%)
Bank-Owned 1 (2.2%) 0 (0%) 0 (0%) 0 (0%)
Regular 42 (91.3%) 18 (94.7%) 16 (88.9%) 4 (100%)

 

I hope brief study helps my Palm Harbor buyers and sellers understand the current ratio of traditional listings to distressed property listings. As is obvious I have refrained from commenting on why these numbers might be important to buyers and sellers of real estate. That will be a different post.

* These numbers only pertain to single-family houses and not condos, townhomes, villas, or land for sale.
* I rounded my numbers off and might not have always done so perfectly.
* The numbers don’t always add up to 100% because there are a few other seldom used categories in MLS, such as “pre-foreclosure” and “in foreclosure.”

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