Thursday, December 06, 2007

Distressed Properties Update

This month's graph may make you wonder--have we reached the peak for the foreclosure/short sale market? The increase in REO/short sale properties is the smallest since March. But, consider that 42% of the market is either REO or short sale. It was 8% at this time last year. Will we reach 50%???


Anonymous said...

IMO- We are not even close to the bottom of REO's. As subprime resets will continue to rise and 6 to 9 month lag for REO's to kick in after resets- we will not see the bottom for another year. Just a holiday slow down for banks and the entire market.

Gwynster said...

nice work.

Seems all I see anymore are S/S (which are pretty much a waste of time) and REOs.

REOs will decrease around the holidays as noone wants the bad publicity of tossing people out of their homes during Xmas. I think we'll see a larger % growth in distressed properties after the new year.

... said...

WSJ touting 32% listing reduction in Sac area today as well as other major met areas.

G - agree - Given the same price, sellers that are not REO or short sales are easier - often cleaner, nicer.

Gwynster said...


REOs can still be a good deal as long as you know what you're getting into. It's negotiating with the servicers on a S/S that aren't worth the time to make a first phone call.

Hubbie now wants to pass on Woodland and only look at Davis to stay closer to work. I'm starting to really miss downtown/midtown. Neither area has anything worth pursuing yet.


Buying Time said...

Sippn -

I'm gonna give you the benefit of the doubt and assume you accidentally left out the decimal point =)

3.2% fall reported for Sac in WSJ

Josh said...

3.2% fall reported for Sac in WSJ

I'm assuming you're talking about listing inventory. For perspective, Sac County inventory dropped 23% between 2007-12-02 and 2007-01-06. It took until June 2007 to recover.

... said...

Decimal point here or there, 3 months ago I could have seen it. Can you guess how old I am? Need these 8) not these :)

Only wanted to point out how fast the headlines form weather the news is real or not!

They did mention it was seasonal.

But, thinking about it in light of hte very low sales numbers, its an improvement that the trend is following the seasonal trends some.

smf said...

"But, thinking about it in light of the very low sales numbers, its an improvement that the trend is following the seasonal trends some."

I think that if you go back to about 2001 or before, the current sales number pretty much match those years.

In other words, these 'low' sales numbers are really quite the normal sales activity. Hence, you may not realistically expect them to increase in the near future.

Anyone with actual #s please correct me.

Tyrone said...

Burn, realtors, burn.