Short Sales Resurge as Quality Residential Inventory Thins

Though the real estate market has slowed, it has not stopped. The many buyers who “missed out” in the last rush to buy before it was “too late” are now reaping the benefits of having “waited”. With continued record low prices and interest rates, many lucky buyers have become homeowners for the first time and a whole host of new investors are set to become the next generation of landlords.

As sellers of regular listings clung to the stratospheric prices of the boom, distressed property sales including short sales and REO foreclosures became the “darlings” of the buying public – for owner occupants and investors alike.

As increasingly larger numbers of short sales went to foreclosure, savvy buyers began snapping up the discounted and easily closed REOs leaving the short sales for the diehard masochists.

But as the inventory of quality residential listings has fallen in our market, it is not uncommon for buyers to be in multiple offer situations. This auction style scenario, most notable among the REO listings, is generating frustration among Buyers who find their good offers just aren’t good enough.

This new reality has precipitated at least two events in our market:

• Pressure on prices to increase
• Renewed interest in short sale offerings

Though short sales have gotten a bad rap, and lost many advocates, they are now making a comeback as Buyers fail to attain their bargain buying goals in the heated competition for REO listings. And as many short sale listing Realtors are prone to do – accepting only one good offer and placing the others in backup position – they give buyer #1 first crack at an accepted bank approval without the anxiety of getting bumped or outbid.

Will we now see more competition for short sales too? Could our reduced local inventory mark the beginning of a market turnaround? Stay tuned!

If you are facing foreclosure, protect your credit. Consider pursuing a short sale. We have a dedicated, full-time, in-house, experienced short sale negotiator who successfully processes short sale listings for our clients only.

Tod Hunt, Broker   The Atlas Group  Medford OR