Following is a real estate market update for November 2010
Distressed properties for sale, in escrow and sold is still relatively large in Gilroy. Even though the number of short sales in escrow is large at 124 the number closed last month is only 16. The number of bank owned properties in escrow is much lower at 39 yet 17 closed escrow last month.
The Real Estate market in Gilroy is still recovering from the fallout of the sub-prime mortgage disaster. Many homeowners are victim of high risk mortgages which forced them to sell or abandon their properties resulting in a flood of homes for sale added to the real estate inventory causing the value of properties to spiral downward quickly. The decrease in property values effected other homeowners in these communities as well; their homes are now "underwater" causing the next wave of foreclosures and short sales.
It is never a good idea to walk away from a mortgage before talking with the lenders about loan modifications or selling the property as a short sale. Make sure you are working with qualified professionals with a track record of successful transactions. Consult your CPA or tax lawyer in addition to a Realtor® who has closed short sale transactions in the past.
The percentage of distressed homes for sale in Gilroy is still large at 60%. This number includes short sales and bank owned properties.
After a seller and buyer agree on the terms of a contract the buyer pays the required down payment to a third party, usually a Title company, which holds the funds until title is cleared and all contingencies are lifted. The close of escrow date is scheduled at the time of "purchase" and when all conditions of the contract are met the new owner can take possession of the property at close of escrow. This process can be very lengthy when dealing with short sales. While the norm is 30 to 45 days for close of escrow the short sale process can take anywhere from 2 to 8 months or even longer.
Even though the number of short sales in escrow is large relatively few short sales close escrow. The number for bank owned properties which close escrow is much larger.
The percentage of distressed homes in escrow in the Gilroy market is very large at 85%.
65% of distressed properties are short sale.
24.1% of distressed properties are bank owned. Average price for a bank owned property is slightly higher than that of short sales. Bank owned properties tend to close faster than short sales.
62% of homes sold (closed escrow) were distressed properties.
As you can see from these statistics the number of bank owned properties sold is larger than the number of short sale homes while the number of short sale listings in escrow is much larger than the number of bank owned properties in escrow.
If you are thinking of selling or buying contact me and I will be happy to team up with you to find a solution for your real estate needs.
Comments(2)