Distressed Homes Inventory Declining

Filed Under Forclosures and Bank Owned Homes, Seller Information · Tagged:  

In recent months the “Shadow Inventory” of distressed homes has declined helping ease the downward pressure on our real estate values.  Here’s some relevant facts:
• The shadow inventory of residential properties as of July 2011 fell to 1.6 million units, or 5–months’ worth of supply, down from 1.9 million units, or a 6-months’ supply, as compared to July 2010.
• Of the 1.6 million properties currently in the shadow inventory, 770,000 units are seriously delinquent (2.2-months’ supply), 430,000 are in some stage of foreclosure (1.2-months’ supply) and 390,000 are already in REO (1.1-months’ supply).
• As of July 2011 the shadow inventory is 22 percent lower than the peak in January 2010 at 2 million units, 8.4-months’ supply.
• The total shadow and visible inventory was 5.4 million units in July 2011, down from 6.1 million units a year ago. The shadow inventory accounts for 29 percent of the combined shadow and visible inventories.
• The aggregate current mortgage debt outstanding of the shadow inventory was $336 billion in July 2011, down 18 percent from $411 billion a year ago.

September 27, 2011 by ·

Is the Value of My Home is Still Falling!?

Filed Under Buyer Information, Seller Information · Tagged:  

Quoting the latest May, May, 2011 RMLS Market Action Report, the media will tout – and place the fear of God in you –that home prices fell 1.8% last month in April! But let’s take a closer look. The report does not differentiate resale homes and bank-owned properties. Distressed homes currently account for 38 – 40% of our market activity. According to Pat Stone, CEO of WFG Title, property owners actually saw their home values go up! It’s the banks which are slashing their prices to liquidate their inventory pushing the average-sales-price statistic down.
Both closed transactions and pending sales were up the Portland area by 8.1% pushing the total-market inventory down to a 6.9 month supply – the lowest it’s been since the rush of October, 2009 when the $8,000 Federal Tax Credit expired. A 6 month inventory is the benchmark between a buyer’s market and a seller’s market and we’re starting to see glimpses of that change.
If you’ve been on the fence about buying because of declining property values, now just may be the time. Investors have been on the bandwagon for some months now with title companies seeing a record number of all-cash transactions, 38 – 40% to be exact!

June 16, 2011 by ·

Cost Versus Value!

Filed Under Seller Information · Tagged:  

The latest Realtor Magazine had its annual Cost Versus Value annual report – how much do improvements really add to the value of your home? I thought it was interesting that the number one improvement was replacing your front door. It adds reinforcement to first impressions being lasting impressions, especially when selling your house!

http://www.realtor.org/rmohome_and_design/Articles/2011/1101_costvsvalue

January 7, 2011 by ·