Ladies and Gentlemen,
The links below contain descriptions of each property organized by “status”, that is, whether it’s currently available for sale, under contract, sold, or was listed for sale but did not sell. A short description of each property is provided, followed by a summary table of each property’s key features, which allow you to easily compare the features of your unit with others in our building.
Click HERE to view the pending and close sales from May 1, 2022 – October 30, 2022
Click HERE to view the properties for SALE
Click HERE to view the properties for RENT
I appreciate the opportunity to provide you with a Comparative Market Analysis for Turnberry on the Green Condominium. This analysis contains a summary of the recent real estate transactions in our condominium for apartments that are similar to yours. While none of the apartments included in this analysis are exactly like yours, they do provide a good basis by which to compare your home with the “competition”.
Your home may have special features or improvements that could substantially affect the price range in which it should be listed. We will discuss pricing in more detail after you’ve had a chance to review the enclosed information.
How REOs reflect a changing real estate marketplac
Starting with the run-up to the Great Recession, there have been dramatic shifts in the number of REO properties sold. From 2000 until late 2006, REOs rarely reached 2.5% of total home sales. At the Recession’s apex in January 2009, they accelerated to 27.7% of total sales. After three years in the REO sales stratosphere, sales steadily declined by about 2% to 3% per year.
Before we examine some of the factors affecting the extent of REOs and who’s buying them, let’s define exactly what they are.
How a property becomes an REO
While REO stands for Real Estate Owned, it’s actually a property owned by a lender due to a homeowner defaulting on their mortgage. The lender is typically a bank, governmental agency (FHA or VA) or quasi-governmental agency (Fannie Mae or Freddie Mac) that foreclosed on the property.
Prior to foreclosure, although details vary by state, a homeowner is notified when there is a 90-day delinquency. The owner is informed that past-due payments must be made or the lender will begin the foreclosure process. A homeowner who can’t make their payments could try to sell the property through a short sale or public auction. If the sale doesn’t go through, the lender takes possession and the home becomes an REO property.
At that point, the lender attempts to sell the property quickly. A bank may list the home and employ an agent to list it on the MLS. A government-reclaimed property is usually sold by a broker working on their behalf. REOs are almost always sold in “as is” condition and are priced to recover most or all of the debt.
REO volatility and investors’ impact
In December 2006, one year before the Great Recession, REOs accounted for just 3.1% of total home sales. A year later, REOs rose to 8.6% of total sales and gained momentum until they peaked in January 2009. Then, for 39 straight months, REOs remained above 15% of sales and didn’t drop below 10% until May 2013.
Well-capitalized investors increased their residential REO purchases in the Recession’s wake. Their intent was to buy at discounted prices, rent their properties during the rental market boom, and, as the market recovered, sell off these homes to buyers at considerable profit.
REO sales continued their steady decline until they reached pre-Great Recession levels prior to the coronavirus outbreak. Then, during the COVID-19 lockdown and with the approval of the CARES Act Forbearance on all federally backed mortgages, REO sales dropped below 1% by mid-2021.
Once again, but now based on historically low rates, institutional investors purchased more residential properties. In 2021, according to the National Association of REALTORS®, they bought 13.2% of houses, typically paying 26% less than states’ median prices. Many investors purchased homes in need of repair and, according to 42% of REALTORS® surveyed, converted their single-family purchases into rentals. While not purchasing REOs per se, which were virtually nonexistent, investors helped drive record price gains through cash purchases, aggressive bidding and the resultant reduction of houses available for ownership.
This spring, the FHA responded by giving owner-occupied buyers and nonprofits first dibs, a 30-day bidding period on foreclosed properties prior to investor participation. Plus, as the Federal Reserve rapidly raised interest rates to reduce inflation, many institutional investors vacated the housing market as quickly as they had entered it. Residential real estate continues to get more interesting as time marches on and markets shift.
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