Foreclosures in Big Canoe have begun.
At the bottom of the article we detail the first 2 to hit the market.
It is October 2021 as I initially write this, and foreclosures have finally started ramping up after 18 months of forebearance and moratoriums. Data shows that foreclosures jumped 32% over last quarter, and 67% on a year-over-year basis.
There are similarities to 2008. The “Lehman Brothers” catalyst this time is likely coming from China markets. Evergrande, Fantasia Holdings, Sinic Holdings and a long list of Chinese Real Estate Developers have begun defaulting on their globally held bonds. Even before the pandemic, global real estate markets were at risk of being in a bubble. The resulting stimulus response and unprecedented money printing pumped even more money into real estate. Areas like the North Georgia Mountains, and Big Canoe, have received an even larger portion of that bubble effect, as fear of social unrest caused the well-off to over invest in areas that were perceived as “Safe Havens”. In Big Canoe, and other areas of North Georgia, the real estate bubble has been inflated to record levels.
In 2008 some of the local Real Estate Cabal tried to make it look as if the Big Canoe Markets was holding up, and would escape the foreclosure nightmare that was hitting everywhere else. All it did was delay the collapse, and make it worse. In 2008/9 all kinds of tricks were employed, including intentional Mis-Listings (“accidentally” putting the wrong zipcode on properties so that they were effectively hidden from buyers). Another trick was to “Ghost” certain properties from real estate sites, listing them, but then tagging them as temporarily unavailable for view. The goal was to delay the growing number of foreclosures from selling, in order to artificially keep appraisal values up. Many insiders were taking advantage of this “market delay” in order to get ahead of the collapse by dumping their own properties. Another approach some Realtors appeared to have taken was to use outdated appraisal values to push high listing prices, at the same time they were leveraging their insider knowledge of the hidden foreclosure inventory to mark down their own properties, giving themselves unfair pricing advantage. In short, they were dumping before the collapse, leaving those relying on their professional advice holding the bag.
As this next foreclosure crisis begins to unfold, this article series is going to investigate properties on the market in Big Canoe, make sure that all foreclosures, auction and distressed properties are made known so that property owners can have transparency as to real market conditions, and to review what insiders (Realtors, Big Investors, and the Developer) are doing with their own properties.
It is exceptionally early in this currrent real estate cycle, and we are just seeing the beginning data. It will be interesting to track the changes, and speed of changes in market conditions.
Below are the first 2 distressed properties to hit the market, as things head into a new cycle of the market….
- 605 Grouse Gap Dr, Big Canoe, GA 30143 / recent foreclosure sale
Listed for sale in 2018 at $349,900, this 2,160 Sq Ft home foreclosed in 2020 and was recently sold Sept 24, 2021 for $143,000. The property has been manipulated in online databases to be hidden from most standard property searches. It is also hidden from searches in the “SOLD” categories on site such as Zillow, which keeps it from be factored in as a “Sales Comp” or “Z-Estimate”. While this is just the first in the coming Wave and at this early stage has little impact on the market…. it is important that people keep up with these “shadow foreclosure sales”, because at some point they become public, and the price correction then can be sudden, as pricing algorithms and appraisal data get triggered to create a downward snowball effect. - 314 Red Coat Pass, Jasper, Georgia 30143 (auction date; Nov 4, 2021)
* Price History shows the property last listed for sale at $460K, then dropped to $429K, the property is currently under a Default Notice and scheduled for Auction, with a Starting Bid of $200K. This one is also currently “Hidden” and “Manipulated” as Zillow hides it under a fake address, “‘314 Red, Jasper Ga 30143“, which since the address doesn’t actually exist, it doesn’t show up in map views. Furthermore, the active listing, under the fake address shows a “Z-Estimate” and Auction Value of $474,900… when in reality, the Auction Website for the Property has a bid price of $200K. The Auction site actually lists the “Value” of the home at $549,000. Amazingly, when you look at the real (correct) address listing,“314 Red Coat Pass, Big Canoe, GA 30143“, it shows the Z-Estimate at only $406,700, with a “lowside” estimate at $358,000.To summarize, the fact that the property is being sold at foreclosure auction is being hidden using fake address listings, and both Zillow and the Auction site are FALSELY INFLATING the Z-Estimates and Value of the property by as much as $191,000, with the actual OPENING BID coming in $349K under “Value”. Zillow has actually created “faked Z-Estimates” in two separate listings, while the Auction site literally just made up a number at least $100K higher than anything remotely found elsewhere. It is blatant and intentional manipulation that has been easily documented in the links provided above.
These foreclosures will continue to be “hidden” from algorithms, appraisals etc for as long as they can…. until they can’t. History shows that once they are incorporated, the price corrections across regional markets will be swift, unexpected and devastating; catching the average citizen completely by surprise.
The purpose of this article is to offer readers transparency regarding some hidden fundamental conditions in the market. Before you buy a home or lot…. Do your research. Be Patient. Foreclosures will eventually cause prices to come back down, and supply to come back onto the market. Don’t get stuck in an “Upside Down Mortgage” like so many that bought in 2007 and ’08. Conversely, if you NEED to sell/move, don’t buy into the never-ending upward hype the Insider Realtors and big tech real estate sites are pushing, and consider getting ahead of what could be a sudden downside trend. Position your property accordingly.
Peace,
– david / publisher
Focus on Big Canoe, GA
* a publication of The Mountains Voice
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