Tuesday, September 11, 2007

MLS Entry Statistics

There's been a lot of discussion lately about the number of REOs and Short Sales entering the market. I've read that up to 8,000 REOs are for sale, yet I've been unable to confirm such a large number through MLS searches. My numbers show a little over 3,000 short sales and around 2,400 REOs currently listed in MLS. As I've alluded to before, those numbers are low because of entry errors and agent oversight. However, I just can't see 5,000 additional listings in MLS as not being correctly identified as REOs. So why the discrepancies? That's a good question and unfortunately I can't do much with it as I only have access to what's in MLS. So, I decided to look at some MLS entry statistics and see how many listings have been entered and what proportion are REO/Short Sales.
What is really surprising is that short sales are escalating, but REO listings are not. Are banks holding on to the properties and hoping that spring will bring them greater opportunities?

Here's a quick snapshot of sales activity for REOs and Short Sales over the last 3 months. Take note at the small number of short sales that are selling, even though there are more short sales in MLS than REOs. Why you ask? Look for a new post with an in depth look at the short sale process I was just involved in with some sellers and you'll soon find out...

3 comments :

Steven said...

I recently purchased a short sale and can't wait for your post with the seller's perspective.

Anonymous said...

Thanks for the great information!

I too was baffled by the Business Journal's reference to 8,000 REO's in the four county area, yet your MLS data didn't reflect that. All I could think of was (1) the banks are slow to list the REO's (something I have witnessed) (2) agents are not identifying the property as REO on the MLS data entry or (3) the MLS data lags the actual recordation of the trustees deed by several thousand units.

Darth Toll said...

AB,

Thanks for the good work. It seems the banks are still engaged in a mark-to-make-believe scam and are holding back the flood of REO's to prop the books up. It won't be long now before they cave in. CFC is almost there and BAC will be picking up the vulture capital pieces.

steven,

Much lower prices are on the way so hopefully you got 60% off peak or you just lost $$$.