It takes no genius to understand the likely direction of home prices as 2011 peeks around the corner. Here's why...
Here we are on December 23 looking at 1,531 short sale residential, condo and town house units actively on the market in Brevard County, Florida. Consider there are another 889 units in a pending or contingent status as well.
With 101 short sale properties closing during the month of November the current inventory is…about 15 months!
Foreclosure activity in November 2010 saw 152 units close but still there are 754 bank owned properties that are active in the MLS as of today. Another 377 properties are under contract but not yet closed.
Based on the active foreclosures and last month's sales there is almost a 5 months supply of foreclosures currently for sale in Brevard County.
So, without considering the new foreclosures and short sales that will be hitting the market (another 116 new short sales listed this month), one can easily see the impact distressed properties will play in 2011 in Brevard County, Florida.
Another unknown or two that may factor into the Brevard real estate market in 2011…unemployment (shuttle workforce issues), interest rates (been creeping up lately).
I am not a prognosticator but....