Phoenix Real Estate Rallies

Two months of increased real estate volume recorded through the Registry of Deeds and signs that a backlog of foreclosures are moving forward are good signs for the real estate market and county coffers.

“You need to see volume to tell you that there's life out there,” Register of Deeds Jack Meade said.

In February, Meade said the Registry processed about 100 orders of notice, the precursor to formal foreclosure filings.

In February 2011, foreclosures saw a sudden decline, as banks voluntarily held back as questions were raised about certain processing procedures.

With some recent court rulings favoring lenders and others holding delinquent mortgages, there has been an uptick in foreclosures moving forward here and across the country.

Meade said that not all of the increased foreclosure activity would add money to the county’s bottom line. Foreclosures handled through Fannie Mae and Freddie Mac, the federally backed mortgage corporations, do not pay excise taxes when they clear properties.

Still, with heavier foreclosure and true market activity seen in both January and February, Meade believes sales volume could start creeping back.

“We should do better than what we did this year,” Meade predicted. “I do think that there's been some pent-up demand for a period of years.”

That’s a scenario that Barnstable County officials hopes pans out.

Revenue out of the Registry of Deeds counts for greater than 40 percent of county revenues and is the single greatest contributor to its general fund. When the real estate market slips, available money for county operations does as well.

February saw an increase of more than $130,000 over last year. While February 2011 saw the lowest level of excise taxes in any of the past three years, Meade said that any time there’s a 30 percent increase, tied to an increase in volume, that’s a good sign.

Last year, the county’s general funds balance dropped $360,000, even with $1.2 million in budget turn backs and decreased spending. This year, projections contained in the proposed 2013 budget show an anticipated $2 million-plus drop in the general fund, based on flat deeds revenues through the end of the year.

With four months left in this budget year, the hope is for stronger revenue out of the Registry to lessen that drawdown.

Based on his experience, Meade said that the revenue projections from the Registry of Deeds in the proposed 2013 budget are not unrealistic. County Administrator Mark Zielinski reduced the amounts for both the deeds excise tax (down $450,000) and business revenues (down $220,000) for next year to a flat $10 million.

Overall, Meade was more optimistic about what he’s seeing, even with the foreclosures.

“It means these houses are back in play ... and that's a good thing,” Meade said.

Source: http://www.barnstablepatriot.com/home2/index.php?option=com_content&task=view&id=28146&Itemid=30