The Wave of the Future?

It appears the banks are figuring out that they lose less money when they agree to negotiate and get properties sold through a “Short Sale” instead of taking the property back through a Trustee’s Sale foreclosure.

“Short Sale” by definition simply means the asking price will net less than what is owed on the property.

This can be seen statistically right here in South Lake Tahoe as well as throughout the region and country with similar trends.

Take a look at this comparison of the first 1/2 year sales of 2009 vs. 2010 and observe where the changes have occured.

This first chart shows sales volume is up over 33% in Units sold for the first 1/2 of 2009 vs. the first 1/2 of 2010.

Number of Units Sold first 1/2 of 2009 vs. 2010

This 2nd chart shows little change in price for both Average and Median prices.

Average vs. Median Price

Similarly the price trend for the last 9 months straight have been relatively unchanged.

18 Month Price Trend

Time on Market (DOM = Days On Market) is also decreasing as well as the $ Per Square Foot

Days On Market vs. $ Per Square Foot

Percentage of Asking Price Obtained for both the “original” and “current” asking prices have improved.

Percentage of Asking Price Obtained

Finally the chart that shows the biggest change of all these statistics is the % of Short Sales.  This chart shows a small (2.0%) decrease in the percentage of Bank Owned sales that have occured yet more than a 150% increase in Short Sales over the same period of time.

Percentage of Bank Owned & Short Sales

In conclusion it looks like we are in for a Wave of Short Sales so get out your inner tube and ride the wave.

Tags: lake tahoe, Real Estate, short sale

This entry was posted on Wednesday, July 14th, 2010 at 12:28 am and is filed under Real Estate. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.