The Dane County Distressed Property Index was 36.8% in July, up from the June reading of 34.9%, and also up from the July 2010 reading of 23.8%. This month's reading was Dane County's highest and the ninth in a row above 30%.
The index has been climbing for two main reasons: 1) Last year was a record year for Dane County foreclosures, and many of those foreclosures are hitting the market right now. 2) Home and condo sales this year are trending along historic lows. Many of the units that are selling in this market are the foreclosures - because they can compete aggressively on price.
Here's how the distressed property index has been trending since 2006.
We expect the index to decrease in the next few months, but remain above 25% for at least the next year.
If you are interested in purchasing a distressed property, we have five foreclosure search tools to assist you with your bank owned (REO) and short sale property search. All five tools are available on our property search menu as well as our foreclosures menu at DaneCountyMarket.com.
Dan Miller, Realtor, Keller Williams Realty and www.DaneCountyMarket.com