My good friend and colleague, Charles Swope, asked me this very question after reading my post, http://activerain.com/blogsview/914699/Toms-River-NJ-Monthly-Market-Report-January-2009.
So, I did the very research Charles had inquired about and here are the results:
- 9 Single Homes CLOSED in Toms River, between $200,000 & $249,999, in January '09
- 3 of those 9 were "Short Sales"
- 2 of those same 9 were REO's (Real Estate Owned) (Bank Owned)
So, more than HALF of the closings in Toms River, in January 2009, between $200,000 and $249,999, were "Distressed Sales"! I think a more significant question may be, "How many of these homes were purchased by users and how many were purchased by investors?"
Historically speaking, the formation of a "bottom" and stabilization of a "down market" is usually signaled by an increase in "investor buyers" as they snatch up the "bargains"! "User Buyers" cannot compete with the investors as they do not have the cash reserves and "quick closing" ability of their rivals. Once the "bargains" have been cleaned out, the "users" will begin purchasing the "best of the rest" and the "stabilization" will have begun.
How long will this process take?
"All real estate is local". So, as far as Toms River, NJ, is concerned; we'll see how the next two months compare to January before I make any predictions but based on the national and local trends developing, we may be closer than we think!
;)
;)
