I posted this information last week at www.LongBeachHomeBlog.com but I wanted to make sure everyone here saw what was going on in the short sale market in Long Beach, CA.
The data paints an interesting picture and would look like we haven't seen nearly all of the REO's that we are going to see. Many banks are denying short sales that were similar to ones that they were approving last year.
This leads me to believe that they may choose to take these as bank owned properties instead.
Original Post by Joseph Bridges at http://www.longbeachhomeblog.com/2008/07/short-sales-in-long-beach-are-266-of.html
How many short sales are there in Long Beach, CA? According to the MLS that serves the area 26.6% of properties are either attempting a short sale or are about to be one. By the way that is for those who are accurately reporting the situation (this is solely my opinion and more on that later in the post).
How Much Inventory is Available in Long Beach?
The answer may surprise some. There is actually less inventory today then there was just a few months back. The inventory level in Long Beach, for residential properties, is actually decreasing.
- Total Available Properties: 1,683
- Total Properties Facing Short Sale: 448
I define properties facing a short sale as defined as any property that has been identified by the listing agent in the MLS as:
- Short Sale Subject to Lender Approval - The definition of a short sale.
- Notice of Default - This means that the lender has issued a notice that the owner is behind on their mortgage and in danger of losing their home. I am making an educated guess that most people in this situation owe more than the property is worth or they would sell it and get out.
- In Foreclosure Process - another phrase that means the property is still owned by the seller but they are having some financial hardship.
Is everything being reported?
I would say that not everything is being reported. Some homes start off as regular sales and as the market has adjusted they have turned into short sales and not all listings may have been updated. Some agents have said they don't report that their property is a short sale so that they get more showings. This is a violation of MLS rules but they are doing what they think is right for their client.
What does this all mean
It may mean that far more than 26.6% of properties in Long Beach are short sales or may eventually be owned by a bank. Does this mean the market is failing apart? I would say no. Properties are still being sold every day. It does mean that you need to price your property aggressively if you are a seller.
Properties that are in top condition still get multiple offers when priced aggressively.
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