Friday, August 25, 2006

Short Sale Activity

I started tracking short sale activity about a month ago. In the most basic form, a short sale occurs when a seller doesn't have enough funds to cover the selling price of a home. I've long felt that short sale activity would gradually pick up due to the creative financing epidemic we recently went through. Here's a snapshot for Sacramento County:



I can tell you with 100% accuracy that this number is actually lower than it should be. In our MLS system, there's a status that agents are supposed to use when entering a short sale so that it's clearly marked. I've seen countless listings where the agent simply adds "short sale" in the "Agent Only Remarks" section and leaves it at that. With so many new agents out there, I think most of them probably don't even know that status indicator is available.

Anyway, stay tuned for follow up reports on this very telling statistic.

4 comments :

Melody said...

Great articles. Thanks for posting.

Christopher said...

"In the most basic form, a short sale occurs when a seller doesn't have enough funds to cover the selling price of a home." OK, color me clueless, I have no idea what this means. What does the seller need to cover the selling price for???

Max said...

I think he meant "the outstanding loan balance".

Agent Bubble said...

Yes, Max is correct. I'm so used to people using 100% financing, that I failed to separate that out.