Tuesday, March 6, 2012

More Disinformation in the Media

This article was linked on the Drudge Report, so it likely got a lot of hits.  The dire headline:  Foreclosure Sales Flood Market.

The basic problem with the article is that it relies on Realtytrac.com as a source.  Ugh.

Realtytrac is the same thing as Zillow.  They are not a licensed real estate broker, and they do not have access to MLS data.  They scrape the same property tax assessor websites as Zillow.   As we all know, tax values have little to do with actual market values.

Apparently, the doom and gloom for this article comes from the fact that local municipalities have recorded a higher number of foreclosures.  This does not mean these foreclosures are even on the real estate market, but the article says this increase is an indicator of a future glut of distressed properties.

In the Sarasota and Bradenton real estate market, a year ago there were approximately 5500 short sale and bank owned properties available for sale the MLS.  Today, there are 1700 available short sales and foreclosures.  Yes, BOTH short sales and foreclosures.  My analysis of Sarasota and Manatee County real estate prices shows most popular neighborhoods are flat to up in average price and price per square foot in 2011 versus 2010. 

It is hard to see how our local real estate market will experience a glut of distressed properties in 2012.  Don't believe everything you read in the media.

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