Sunday, September 17, 2006

Bubble Bits

  • In my last post on the short sale class I attended, I forgot to include some information that I found very interesting about appraisals. The instructor had statistics that showed 55% of appraisers saying they were pressured to get a certain value by the lender. Additionally, 33% were threatened with no more appraisals if the value didn't come in. This was during the 2005 calendar year.

  • I ran some numbers for the Elk Grove area with regard to distressed properties. By distressed, I'm referring to any property that is either in short sale, pre-foreclosure, or bank owned. Here's what I discovered:

    • # of homes for sale: 1,440

    • # of short sales: 38

    • # of pre-foreclosure: 4

    • # of bank owned: 18

    • # sold in last 3 months: 469

    So, this is showing that 1 in every 24 homes in Elk Grove is either a short sale, pre-foreclosure, or bank owned. It's also telling us that there's a 9-10 month inventory supply.

  • Let's see how this compares to Sacramento County as a whole:

    • # of homes for sale: 9,313

    • # of short sales: 271

    • # of pre-foreclosure: 22

    • # of bank owned: 143

    • # sold in last 3 months: 3,292

    This is showing us that about every 1 in 22 homes is either a short sale, pre-foreclosure, or bank owned. There's also about a 9 month inventory supply. I can guarantee you the number of short sale/pre-foreclosure/REO is low because not every agent knows how to enter one in MLS. I've seen countless listings showing "short sale" in the comments field, but it's not in the status field (and not captured during my search).


Max said...

Hmmm... 1 in 22... That's very close to the flippers in trouble ratio I'm getting by looking at previous sale price. I'll take that as independant verification. :)

I think it's important for people to know that we arrived at our numbers in completely different ways. It also shows the toll these flippers are taking in the industry and in our community.

Anonymous said...

Fascinating work gentlemen. I really look forward to your weekend posts.
It seems like the real estate market is getting very very quiet these days. I noticed even the sign twirlers are getting jaded. Formerly, they were bouncing around to the music, having a great time. NOW...they just sit there until they see a car coming....which is few and far between in this market.
I noticed a new condo project in Roseville, The Phoenician, had sign twirlers out ALL WEEK. They really must be having trouble dumping units. That developer is a real @$$. Last year, he would not give you a price just had to "submit an offer" at what you're willing to pay. What a joke..... now they can't give the units away with "huge incentives". That knock, knock, knocking sound is no longer F'd B's, but rather the F/L (Foreclosing Lender). LOL to those idiots.

Anonymous said...

1 out of every 20 homes for sale?

That is one for every block!

The market is going down if interest rates increase.