I tweeted earlier today that I was running into a lot of unmotivated sellers. Last week, I showed homes to six different buyers. Some were investors, some second home buyers, and one couple moving to town because of a new job. I cannot tell you how many homes we looked at that were priced too high for the market especially in the higher priced homes. This made me think about what the local inventory must look like broken down by price range. I also separated bank owned, short sales and equity sales. The graph below illustrates the big difference between the distressed properties and equity sales.
REO are the bank owned properties, Short of course are short sales and Equity are "normal" sales. This graph shows the percentage breakdown by price range. I did not go into great detail, but chose to look at properties under $100,000, between $100,000 and $200,000 and properties over $200,000. Homes under $100,000 made up 55% of the REO inventory, 44% of the short sales, but only 18% of equity listings. Homes priced between $100,000 and $200,000 made up 37% of the REO, 41% of short sales, and 32% of equity listings. The highest price category, homes listed over $200,000 made up only 8% of REO, 15% of short sales, but nearly 51% of equity listings. With a median sales price last month of $100,000, I wonder how many of the equity listings are really short sales, but they just don't know it yet.
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