Florida’s Foreclosure Pipeline: Inventory & Prices

January 26, 2011

by Scott Sambucci

4 comments

A question we hear every day – “What about the shadow inventory?  How are housing prices affected?”  with lots of talk about the foreclosure pipeline in judicial states like Florida. (For the uninitiated, “judicial state” means that foreclosure proceedings go through the court system, which considerably slows the clearing the distressed housing market.)

Here’s the very complex answer: Inventory up, prices down.

Check out Tampa (black line in both charts) in particular —

Year-over-year active inventory changes for the Tampa, Fort Myers & Jacksonville MSAs. "Inventory" refers to the number of single-family listings currently for sale in the open market.

Year-over-year Price of New Listings changes for the Tampa, Fort Myers & Jacksonville MSAs. "Price of New Listings" measures the initial asking prices of new sellers entering the market each week. With increased inventory in Tampa, new sellers entering the market are doing so at lower prices.

Also found it interesting that Fort Myers has slightly fewer homes for sale vs. this time last year, and the new listings hitting the market each week are priced above last year’s sellers…

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