Kenmore maintained a large inventory of single family homes in 2008. On any give day there were over 200 homes for sale; however, this changed in November and December. Today the inventory has dropped quite a bit as there are 149 active listings:
SNAPSHOT OF ACTIVE LISTINGS TODAY
The majority of homes are between $350,000 and $550,000. The average days-on-market are a little over 3 months. I’ve noticed that a lot of resale homes have dropped out of the game since November. We may see them return as Spring approaches (and the sellers sober-up about pricing). Even so, 44% of listings have experienced price reductions, some being significant. It’s also interesting to note that almost 35% of the homes for sale today are new construction.
PENDING SALES - LARGE % OF SHORT SALES
The good news is that houses are selling in Kenmore. The bad news is that 58% of the pending sales today are SHORT SALES. For those of you unfamiliar with the process of short selling a home, I highly recommend you read: How To Do a Shortsale to better understand the process. The Wikipedia definition is helpful:
In real estate, a short sale is a sale of real estate in which the proceeds from the sale fall short of the balance owed on a loan secured by the property sold. In a short sale, the bank or mortgage lender agrees to discount a loan balance due to an economic or financial hardship on the part of the mortgagor.
We are living in some extremely challenging times. If you, members of your family or your friends feel that they are having trouble making their mortgage payments, it is imperative that you/they seek the advice of an attorney to determine if a short sale is your best course of action. There are some serious consequences as a result of selling your home short, most of which are negative: Tax exposure, Credit Damage, Legal Problems and a myriad of other issues. Although one might be tempted to choose this course, there may be better alternatives. I highly recommend you contact the law offices of Dale J. Galvin of Galvin Realty Law Group with your questions. Click on the picture below for more information about Dale and his services:
Only time will tell if Barack Obama’s new administration will have a positive influence on the real estate market. Many of the economists I’ve been listening to (cranky folk they are!) feel that we’re in for a tough 2009. I’d like to make this point in spite of all the bad news: If you are ready to buy a home, you need to do your homework. Assemble a team of professionals (e.g. mortgage lender, real estate agent, accountant and attorney) and proceed with confidence!
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