Distressed Properties Continued To Drive Market In 2011

Distressed properties (short sales and foreclosures) accounted for a large portion of sales in Bend last year, continuing a trend we've witnessed over the last few years.  52.4% of all sales of stick built, single family houses on lots of one acre are less were either short sales or foreclosures in 2011.  In 2010, distressed property sales represented just over 51% of total sales.  What changed last year however was the mix of those distressed sales.

Short Sales Outnumber Foreclosures

While the term "short sale" has become ubiquitous in Central Oregon since the market crash, last year's total reached a new high water mark.  465 short sales were closed last year, making up 27.6% of all sales.  This represents a 20.5% increase from 2010, when 386 properties sold were short sales (22.8% of all home sales).

And while too many houses are still being foreclosed on, there's a glimmer of hope that the worst may be behind us.  Foreclosure went from representing 34.2% of all sales in 2010, to just under 24.8% last year.  And the picture improved even more over the 2nd half of the year, when foreclosure sales made up just 18.7% of the total.  The overall number of bank-owned properties sold in 2011 decreased by nearly 28% from a year earlier, from 579 to 418. 

Average Time To Complete Short Sale Improves

It seems everyone has heard at least one horror story about the special challenges of short sales, including often having to wait weeks, and sometimes even months, for an answer. But there's positive news on this front as well.

While short sales continued to take longer to close than other types of home sales last year (162 days versus 110 days), on average, short sales took 51 fewer days to close in 2011 than they did in 2010.  That's almost 2 months faster!

But, if you or someone you know is considering a short sale, don't assume that any agent can handle your transaction.  I've been recognized as a Certified Distressed Property Expert (CDPE) by the Distressed Property Institute and have extensive experience in handling short sales and foreclosures.  I offer free, confidential consultations.  Please call me at 541.410.9060 to arrange a time discuss your options.