There is a lot of news about distressed properties in today's real estate market. Though short sales and foreclosures are both considered "distressed sales," the processes and your success in buying one are very different from each other.
While buying a foreclosure generally only requires that you get the lender/seller/owner (typically a bank) to agree to your offer price and terms, a short sale requires not only the seller/borrower's approval but the seller's lender (or in many cases, lenders) must also accept the price and terms of the contract. This is a HUGE difference.
The following recap of May sales sheds some light on just how divergent these two types of transactions can be.
Of the 119 total closed sales in May for stick built houses on less than an acre in Bend, 13 were short sales (10.9%) and 54 were foreclosures (45.4%). Contrast those percentages to the proportion of houses currently listed for sale that are short sales and foreclosures; 32.9% and 5%, respectively.
So while short sales account for nearly 1 in 3 houses listed for sale, they make up just over 1 in 10 closed sales. On the other hand, only 1 in 20 houses for sale is a foreclosure but nearly half of closed sales last month were bank owned!
In addition, the time it took to close the 13 successful short sales last month was a median of 131 days. On the contrary, the median number of days it took for a foreclosure sale to close was 75, nearly 2 months shorter! (The median time on the market for all sales last month was 107 days).
If you or someone you know would like to learn more about the differences between traditional transactions, short sales and foreclosures, please give me a call. I'd be happy to talk with you about the many important differences you need to know about, whether buying or selling.
Wednesday, June 17, 2009
Tuesday, June 9, 2009
May Home Sales Continue Upswing
Sales of stick built homes on less than one acre in the Bend area increased 14% in May from a year earlier. 122 sales were reported to the MLS of Central Oregon last month, compared to 107 in May of 2008.
The time it took to sell a house also improved, with the median time on the market for sales closed in May totaling 106 days, versus 164 days a year earlier.
The median sale price for homes sold in May was $217,450, down 28.7% from May 2008. The median price increased from April's $195,000 and from $215,000 for houses sold through the first 4 months of the year however.
The time it took to sell a house also improved, with the median time on the market for sales closed in May totaling 106 days, versus 164 days a year earlier.
The median sale price for homes sold in May was $217,450, down 28.7% from May 2008. The median price increased from April's $195,000 and from $215,000 for houses sold through the first 4 months of the year however.
Thursday, May 7, 2009
April Home Sales - The Good, The Bad and......
The Good
Bend home sales continued their upward trend in April, with 105 stick built houses on less than an acre of land reported sold for the month. This marks an increase of nearly 13% from the same month a year earlier, when 93 homes were sold.
Sales activity is up more than 5% through the first four months of this year over the same time period last year.
Time on the market also continues to shorten, with the median time from listing to closing for April sales reported to be 116 days, down 20 days (or nearly 15%) from a year earlier.
The Bad
6 of every 10 homes sold in April were distressed properties, with bank owned houses accounting for 43% of sales and short sales making up another 17%.
While short sales held fairly steady at around 17% of all sales, bank owned property sales increased in April from the first quarter of the year, when they made up roughly 32% of residential sales. This is even more astonishing when considering that bank owned properties account for only about 6.9% of all houses currently listed for sale in Bend.
The Ugly
Home prices continued their decline in April. The median price of homes sold last month was down more than 27.5% from a year earlier, and down 11.8% from the first quarter of this year. The median price of April sales was $195,000, down from $270,000 in May 2008 and $221,000 in the January through March period of 2009.
Opportunity
While it's become common knowledge that home sellers must be realistic in pricing their houses to sell, the current market has created some tremendous opportunities for today's home buyers.
With interest rates on 30 year fixed rate loans right around 5%, the federal government offering "first time buyers" an $8,000 tax credit (defined as someone who has not owned a primary residence in the last 3 years) and prices in Bend down to where they were in about 2004, a buyer can put just 3.5% down using a 30 year fixed rate FHA loan and have a principal and interest payment of only $1,023 per month for the purchase of a home priced at April's median of $195,000.
If you or someone you know is thinking of buying or selling, please give me a call. I'd be happy to discuss the opportunities available to you in today's market.
Bend home sales continued their upward trend in April, with 105 stick built houses on less than an acre of land reported sold for the month. This marks an increase of nearly 13% from the same month a year earlier, when 93 homes were sold.
Sales activity is up more than 5% through the first four months of this year over the same time period last year.
Time on the market also continues to shorten, with the median time from listing to closing for April sales reported to be 116 days, down 20 days (or nearly 15%) from a year earlier.
The Bad
6 of every 10 homes sold in April were distressed properties, with bank owned houses accounting for 43% of sales and short sales making up another 17%.
While short sales held fairly steady at around 17% of all sales, bank owned property sales increased in April from the first quarter of the year, when they made up roughly 32% of residential sales. This is even more astonishing when considering that bank owned properties account for only about 6.9% of all houses currently listed for sale in Bend.
The Ugly
Home prices continued their decline in April. The median price of homes sold last month was down more than 27.5% from a year earlier, and down 11.8% from the first quarter of this year. The median price of April sales was $195,000, down from $270,000 in May 2008 and $221,000 in the January through March period of 2009.
Opportunity
While it's become common knowledge that home sellers must be realistic in pricing their houses to sell, the current market has created some tremendous opportunities for today's home buyers.
With interest rates on 30 year fixed rate loans right around 5%, the federal government offering "first time buyers" an $8,000 tax credit (defined as someone who has not owned a primary residence in the last 3 years) and prices in Bend down to where they were in about 2004, a buyer can put just 3.5% down using a 30 year fixed rate FHA loan and have a principal and interest payment of only $1,023 per month for the purchase of a home priced at April's median of $195,000.
If you or someone you know is thinking of buying or selling, please give me a call. I'd be happy to discuss the opportunities available to you in today's market.
Monday, March 2, 2009
February Homes Sales Up
Sales of single family stick built houses on less than one acre in Bend increased in February from a year earlier, according to information reported to the MLS of Central Oregon.
61 sales have been reported so far and I expect this number will be even higher as more closed sales from late February are added this week. But even without any additional sales, the 61 posted so far represents an improvement of nearly 20% from a year earlier, when only 51 sales were closed.
What's Selling?
Nearly 60% of the February closings were distressed sales, with 21 bank-owned houses and 16 "short sale" properties sold during the month.
The volume of distressed sales is leading to lower overall prices, with the median sale price of February sales at $215,000 for 1962sf, or $109.6/sf. A year ago, the median price was $320,000 for 2008sf, or $159.4/sf.
While the fall off in prices does indicate continued weakness, the uptick in sales shows that more people are ready, willing and able to purchase a home in today's market.
If you or someone you know is considering selling or buying a home, feel free to get in touch to find out just what you can expect in today's ever changing market.
61 sales have been reported so far and I expect this number will be even higher as more closed sales from late February are added this week. But even without any additional sales, the 61 posted so far represents an improvement of nearly 20% from a year earlier, when only 51 sales were closed.
What's Selling?
Nearly 60% of the February closings were distressed sales, with 21 bank-owned houses and 16 "short sale" properties sold during the month.
The volume of distressed sales is leading to lower overall prices, with the median sale price of February sales at $215,000 for 1962sf, or $109.6/sf. A year ago, the median price was $320,000 for 2008sf, or $159.4/sf.
While the fall off in prices does indicate continued weakness, the uptick in sales shows that more people are ready, willing and able to purchase a home in today's market.
If you or someone you know is considering selling or buying a home, feel free to get in touch to find out just what you can expect in today's ever changing market.
Thursday, February 19, 2009
"Distressed" Properties Account For 1 In 4 Houses For Sale
There are currently 1167 stick built houses on less than one acre of land in the Bend area listed for sale in the MLS of Central Oregon. Of these, over 25% are showing as distress sales, meaning either a "short sale" or "bank owned" property.
A transaction is considered a "short sale" when net sale proceeds (sale price less transaction fees) yield less than what is currently owed on the property. In order to close the sale, the property owner must either pay the difference between the net sale proceeds and what is owed or get the lien holder(s) to accept less than the amount owed. There are 196 stick built houses currently listed as a "short sale," accounting for nearly 17% of the available inventory of houses for sale.
In addition, there are 99 houses in Bend owned by a lender and listed for sale. This represents 8.5% of stick built houses currently listed for sale in the area. In most cases, the lender has come in to possession of the property following a foreclosure proceeding.
Of the 66 closed sales of stick built houses on less than one acre in the Bend area in January, 29 (or 43.9%) were reported as distress sales.
A transaction is considered a "short sale" when net sale proceeds (sale price less transaction fees) yield less than what is currently owed on the property. In order to close the sale, the property owner must either pay the difference between the net sale proceeds and what is owed or get the lien holder(s) to accept less than the amount owed. There are 196 stick built houses currently listed as a "short sale," accounting for nearly 17% of the available inventory of houses for sale.
In addition, there are 99 houses in Bend owned by a lender and listed for sale. This represents 8.5% of stick built houses currently listed for sale in the area. In most cases, the lender has come in to possession of the property following a foreclosure proceeding.
Of the 66 closed sales of stick built houses on less than one acre in the Bend area in January, 29 (or 43.9%) were reported as distress sales.
Friday, February 13, 2009
Banks Announce Foreclosure Freeze
3 of the largest banks in the U.S. announced earlier today that they will suspend foreclosure actions on principal residences for at least a few weeks while Congress and the Obama administration work on crafting a plan to stabilize the financial system.
J.P. Morgan Chase, Citigroup and Bank of America, each of which have recently received billions of dollars from the federal government's TARP plan, issued separate announcements Friday disclosing their plans to institute temporary moratoriums on new foreclosure activity.
Read the article from the Wall Street Journal here: http://online.wsj.com/article/SB123454524404184109.html?mod=rss_whats_news_us_business
J.P. Morgan Chase, Citigroup and Bank of America, each of which have recently received billions of dollars from the federal government's TARP plan, issued separate announcements Friday disclosing their plans to institute temporary moratoriums on new foreclosure activity.
Read the article from the Wall Street Journal here: http://online.wsj.com/article/SB123454524404184109.html?mod=rss_whats_news_us_business
Saturday, January 17, 2009
New Listing in Gated Community of Mtn. High, Bend
This single level home features 3 bedrooms, a den/office, 2 bathrooms, a large dining/breakfast area in the kitchen plus a formal dining room. The quiet, impeccably landscaped .60 acre setting is on a quiet cul-de-sac and features majestic ponderosa pines, a large rear deck and hot tub. Three car garage and new roof and water heater in 2008. Mountain High features 9 hole golf, a pool and tennis courts. Really a terrific buy at only $399,000. Call me today to see this beautiful home
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