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Short Sale, Short Sale, Everywhere a Short Sale

As we watch the news, all you seem to hear is how many short sales there are in the market right now and how they are destroying the home prices and consumer confidence. I say let's look at the actual numbers and then decide how bad they are affecting the over all market in Washington County, Oregon.

Today in area 151 which covers Tigard all the way down to Wilsonville, there are 146 active listings that are short sales. In area 150, the Beaverton/Aloha area of Washington County, there are another 182 short sales actively on the market. So the next question would be, of the homes that are on the market, what is their percentage versus all the other homes on the market? Also we'll need to know the percentage of homes sold that are short sales versus non short sales that have closed in the last month.

This should give us a good idea of what is happening in the market place and what is happening when it comes to the home buyers and what they are looking for. Is it a good home or is a good deal or both?

The first number we need for area 151 is the total number of homes that are presently on the market. Last month there were a total of 1,630 homes on the market and of those homes on the market only 146 of them were short sales. That makes 8.95% of the homes on the market short sales and compared to some of the markets that seems pretty darn good. But, now we have to find out how many of the 154 sold during that time. How many short sales were there? You ready for this, only 13 of those 154 were short sales. What percentage is that? Yep, 8.44%, stayed right in line with what was on the market.

Now, let's look at the Beaverton/Aloha area and see if the numbers are about the same there. In area 151, the Beaverton/Aloha area during the month of August there were 1,391 homes for sale and 182 short sales, that is 13% of the homes on the market. You can see Beaverton has been hit a little harder by short sales, but we still need to figure out what the percentage of short sale homes sold were for that same time. Only 9% of the homes sold were short sales.

There are still buyers out there and if you are selling, if you price your home correctly, it still will sell. Now, this doesn't mean that you have to not consider short sales when you price your home. Many neighborhoods have been harder hit than others and that has affected the price in those small pockets a little more.

If you are a buyer, you can clearly see that if you are only looking at an 8-11% of the homes on the market by only looking at short sales, then you maybe missing some great homes at great prices.

For more information on the market in Washington County, if you are buying or selling, contact me and I'll show you all the numbers and all the homes to make sure you get the most for your home if you are selling, and most home for your dollar if you are buying.

Todd Clark - broker
Kastings & Associates
Phone: (503)524-9494
Fax: (503)622-8739

Photo courtesy of woodsy

Posted by Todd Clark (Broker) (503)524-9494 (Beaverton, Oregon Real Estate Expert) on 10/05/2008 11:49 PM

Comments (14)

Short Sales in the Real Estate Market Channel

short sales, beaverton oregon short sale expert, tigard oregon short sale expert, washington county short sale expert, realtor, mls

Originally posted at: Living Beaverton - Your guide to everything Beaverton: Short Sale, Short Sale, Everywhere a Short Sale

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14 Comments on Short Sale, Short Sale, Everywhere a Short Sale

OCT

2008

Hi Todd,

Interesting report, looks like you still have a pretty strong market, definitely more so that others places in the U.S. It's also important that you differentiate your market keeping consumers informed of the reality in your marketplace.

Ours is different, our REO rate is only about 8-12% depending on cities, yet when you add our short sales that number swells to about 38% of closings.

Any short sale that I have been involved with has been a nightmare with a capital N. Most buyers don't have the time to WAIT for all the red tape and slow response time. Hopefully that will improve going forward.

Hi Todd... Great analysis and post. It does a good job of educating and illuminating the short sale issue. Short Sales are an important part of the market, but there is clearly more to the market than Short Sales, and as Janna points out, they're not the right option for every buyer. They key, as always, is sellers and their agents pricing a home properly.

We have a larger percentage here of short sales. Our prices went up significantly over the last several years and have been hit in the last year or two.

Starting to seem like all sales are short sales, Yes?

Aloha

Jim

Interesting statistics. I think all RE agents should get mandatory short sale education because we will all have to deal with a buyer or seller of short sale property at some point, at this rate

Are market is flooded with short sales and foreclosures. We have pocket areas that are affected more than others.

Todd - good point that people looking only at short sales and foreclosures are missing the boat - I have a guy right now who said that is what he wants - a short sale or foreclosure - but I told him to consider all homes in his price range because he just might find a gem.

Todd-

We have a large number of short-sales in the Miami area as well. roughly 8-15% of listed inventory is either a sort-sale or REO. These listed prices have often times not been approved by the lender. The asking prices set the market askew. In a certain condominium in Aventura; prices for the very same line range from $150K to $600K. Guess which ones the buyers are wanting to see?

OCT

2008

Lynda - WOW, 38%? See that is why I wrote the article, because people only hear what they hear on the news and don't look at the actual numbers for their area. Each area of the country is very different and if you are only looking at 10% of the homes, you are missing a lot!

Janna - I agree that these banks need to get their act together or they are going to be getting a lot more homes back in foreclosure which is just going to make things worse in the long run.

Steve - You need to know the area and how each home was priced and why. If you are trying to get a quick sale, you need to know your competition. If you are a buyer, you need to know sometimes the best deals aren't the ones being offered as a short sale.

Christine - Most people think everywhere has 50% foreclosure rate if you watch the six o'clock news and that just isn't the case, but if you look at any one neighborhood you may or may not have that situation. It is all about location, hey where have I heard that before?

James - Not here thank goodness, but if you talk to buyers, that is all they want to see.

Gita - I agree and I have taken a course or two on them and they are a completely different animal. A lot more work, for a lot less pay!

Ellie - I think we all have pocket areas, but I think both buyers and sellers need to realize this that it a neighborhood thing and not a over all market thing like a lot of people think.

Judy - If 100 people are looking at 10 properties that can't help you bargaining power, but if 100 people are looking at 1000 properties, you have all the power in the world with your offer.

Mott - WOW! That is a big difference in numbers, but as soon as those sell, the numbers should come back in line with reality.

Todd- I hate short sales and I think they are the devil! I would much rather wait until they are in foreclosure when I am working with a buyer.

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