Thursday, September 06, 2007

Distressed Properties Update

Our latest edition of "Distressed Properties" has left me with one word--WOW! The past 30 days gave us the biggest jump in short sales and REOs that I've seen since I started tracking the data back in November. Amazingly, 29.3% of MLS listings in the 4 county area are either a short sale or REO. We added 769 homes to the infamous list, giving us a total of 5,344 properties. Fortunately, a couple of realtors over at Realty Times told us that "August saw the real estate market continue to improve" so everything is going to be alright.

8 comments :

Tyrone said...

Sounds like I'll have to add those two realtors to my Housing Bubble Hall of Shame®. I'm always looking for new inductees. :)

Gwynster said...

I have a new favorite phrase that I'm starting to see on distressed listings...
"priced correctly"

You know that the agent stuck that in the verbage because they are getting really tired of being lowballed.

On the good agent front, I had someone tell me to wait out the market. In his words, leverage purchases are history and cash is king.

Bubble Sitter said...

AB, The Sacramento Business Journal writes "....the inventory of bank-owned houses is growing. Almost 8,000 bank-owned homes were for sale in the four-county area at the end of August, according to RealtyTrac Inc. of Irvine...."

Yet we only see 2336 REOs in your stats. Where is the disconnect? I know RealtyTrac's numbers can be suspect, but that seems like a lot of inventory to misplace.

AgentBubble said...

Yeah, that's an awful big discrepancy. My numbers come straight from MLS. However, the numbers are only as good as the agents that enter the data. There are two places in MLS that an agent can use to mark the listing as a short sale/REO. I can see a few hundred being left out, but I can 100% guarantee you that of the 18,230 MLS listings, 8,000 are not REO.

Gwynster said...

AB,

I know that there are currently 4 homes in davis that are REOs, maybe more. Yet the MLS says nothing about being a REO. Davis will never admit it has a problem.

AgentBubble said...

Gwynster,

Can you send me those addresses or MLS #s? I love reporting non-conforming listings!

Bubble Sitter said...

AB, This from Ben's blog today:

“Mackenzie also believes that the number of short sales is far greater than indicated in the MLS. Many sellers are afraid that disclosure would scare off potential buyers since short sales are more complicated and take far longer than normal sales.”

“‘I would take the rate of disclosures that you see and (multiply) it by five,’ he said.”

http://thehousingbubbleblog.com/?p=3391

If short sales are like that, perhaps so is the REO total.

Gwynster said...

AB,
Start with these 3

921 Bienville
3030 Woods
2075 Portage Bay

There are a few more that are now REO but they dropped off my Foreclosures.com listing.

I have a question. If the hose was foreclosed on and is now REO, do they have to say so in the MLS listing? If so, some dective work in Davis will be bad news for a certain Coldwell Banker broker here.