Bank Owned/Short Sales and how they affect the Vilas and Oneida WI Real Estate Markets as of 11-16-2011
The BIGGEST question I am asked by Buyer’s is: “How can you help me find that great bank owned purchase?” The biggest question I am asked by Seller’s is: “How are bank owned sales affecting my market niche?”
There is always a lot of interest about foreclosures and short sales especially when it comes to our water front market. The fact of the matter is that there simply are not that many lake homes that get foreclosed. The chart above shows non-bank owned vs. bank owned sales for the Northwoods MLS. The total numbers are this: Thus far, there have been 975 unit sales in Vilas and Oneida Counties. Of those, 117 were foreclosures or short sales (12% of the market). Of those 117, only 25 were on water (2.5%). Further breaking that number down, only 5 sold for above $250K. I call this the premium lake home market and these 5 units represent 0.5% of the market.
When I look at the total year of 2010, I saw 1144 total unit sales with 123 bank and short sales (10.7%). There were 25 units sold in 2010 that were on water (2.1%) and 11 homes sold for above $250K (0.9%).
What does this all mean? It looks as if the number of foreclosures is increasing as a percentage of sales. The reality is that the raw number of sales appears to be more of the problem (975 vs. 1144). We still have 45 days left in CY2011 so we may make up the 169 unit shortfall in unit sales. The number of foreclosures seems to be rather steady. We certainly are not seeing a spike up or down in the number of foreclosures and short sales.
If you are looking for a “steal” on water, they do exist. They simply are not ALWAYS bank owned properties. There are many sellers out there that are highly motivated and those are the homes that are moving at this time. This is great news for buyers. It is not the best of news for sellers. So, again get your ducks in a row and be prepared to pull the trigger so to speak when something becomes available or is REDUCED into your price range because when they do become available they are often highly sought after:)
Bank Owned/Short Sales and how they affect the Vilas and Oneida WI Real Estate Markets as of 11-16-2011.