The impact of foreclosures this year in Missoula

By
Real Estate Agent with Windermere Real Estate 11741

I've been keeping a sharp eye on foreclosures in our area and how they're impacting our overall market.  This year it is projected that the biggest wave of the shadow inventory will start to hit the market as the "robo-signing" delays in the release of foreclosed properties is now behind us.  From my earlier posts this year my concerns are that 2012 will have a negative effect on the median home values, and the large cause could be foreclosures coming up for sale.  I'll explore more into the median home value impact at the end of the 1st quarter when I've got a good sample of data to look over and compare with.

Today I thought I'd take a quick snapshot of the % of sales have been distressed (REO or short sale).  Based upon what I'm seeing the demand in our market quite possibly outweighs the current amount of supply.  This could be a good thing as it suggests buyers and investors in Missoula are eager to scoop up these opportunities.  This could see quicker market times for these types of properties and would remove some of these eye-sores from our neighborhoods.

 

Active listing mix

Current pending listing mix

Current YTD sales mix in Missoula

 

So overall we see that our current active inventory lacks the same mix that we see in what is pending (under contract or under contract accepting backup offers).  This suggests to me that we've probably got a lot of people sitting on the fence anxiously awaiting for new opportunities to hit the market.

 

Additionally, it's reassuring that currently our market is strongly anchored by what we'd call non-distressed (or NORMAL) sales.  This has more direct economic impact in our market and helps stabilize our prices.  What will be interesting to track this year is how much this mix changes as more foreclosures hit the market. 

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Montana Missoula County Missoula
Tags:
market
foreclosures
trends
missoula
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Rainmaker
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Betina Foreman
WJK Realty - Austin, TX
Realtor, C.N.E., with WJK REALTY

Its good to see that your market is not overly distressed. I think its a sign that we are solidly on the road to economic recovery!

;)

Mar 19, 2012 04:38 AM #1
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Rainmaker
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Brint Wahlberg

The Wahlberg Team
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