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TAMPA — In a sign that that the backlog of distressed properties is beginning to ease, distressed home sales represented a smaller portion of sales across Tampa Bay in 2012 than the previous year, according to a new report by CoreLogic.
Of the total 56,333 sales over a 12-month period in Tampa Bay, distressed sales amounted to 29.8% of the total, compared with 33% a year earlier, according to the CoreLogic data. The stock of foreclosures fell 20.8% from the peak in the region. Delinquencies of at least 90 days declined by 16.4%. Still, Tampa Bay's housing market remains troubled by distressed inventory, with a 14-month supply of distressed homes on the market.
On the national spectrum, Tampa Bay's supply of distressed homes ranked sixth highest among 25 metro areas studied. The Nassau-Suffolk areas of New York State fared worst, with a 24.7-month supply of distressed homes, the data shows. Phoenix and Denver had just a 3.3-month supply, by comparison, and Houston recorded a 3.9-month supply.
Institutional investors stepped up the pace of REO purchases in some markets in 2012, particularly Las Vegas, Atlanta and Phoenix, while individual investor activity led to declines in REO inventory in California markets.
Many properties in Tampa Bay remain “upside down” with mortgages higher than the current value of the property. According to Irvine, Calif.-based CoreLogic, 44.1% of properties in the region had negative equity. Only Orlando had a higher rate of upside down properties, with 45.3% reporting negative equity.
Across the country, there were fewer foreclosed properties and a declining shadow inventory of unsold homes. And with the reduced supply of homes, prices rose in many markets. The appreciation of home prices reduced the number of borrowers who are underwater, affecting more homeowners in markets outside of Florida.
Although housing recovery in slow in locations such as Tampa and Orlando, according to CoreLogic, the data show optimistic signals that the housing market is turning around, and gaining traction.
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