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San Francisco SHORT SALES Statistics Update

By
Real Estate Agent with Alain Pinel REALTORS BRE#00861017

It has been a month since I last did an analysis of the short sale listings in San Francisco.

 

Let me share how these numbers—or percentages—are changing…

 

The percentage of short sale single-family residences (SFRs) has increased from 13% to 18% in the past four weeks. Should we worry about this? ABSOLUTELY NOT! The net increase is ONE new listing. The percent of short sale SFR listings is up because the inventory is down. The first week of December, there were nearly 600 homes on the market; by the first week of January, the inventory dropped dramatically--by nearly one-third--to only 438 homes.

 

As far as condos, I realized an error in my previous analysis that diluted the numbers. In San Francisco, all type 2 properties are lumped together despite there never being—to the best of my knowledge—any foreclosures of TIC interests. (I also doubt as most co-ops require hefty down-payments and interviews that they have distress issues either.) So I eliminated tenancies-in-common and cooperatives from my statistics. By only looking at condominiums (including lofts), the amount of inventory was less with a corresponding increase in the percentage of short sale condos.

 

Whereas four weeks ago, I considered a 4% short sale ratio to be not of much consequence, this number is now 7% sans TICs (and coops)—more significant in my opinion.

 

FYI, the neighborhoods with the highest ratios of short sale condo listings are Ingleside Heights, Potrero, Bayview, Crocker Amazon and Hunter’s Point (67% of the condos on the market are short sales).

 

After I look at the REO trends, I will report back.

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