Distressed Inventory Downturn

Posted by: admin  :  Category: Bank Owned homes, Local Boise Price Charts, Market Updates, REO, Short Sales

Distressed Inventory Downturn

Ada County’s distressed sale inventory has not only shown a fairly steep decline, the homes also are selling sooner in the process. We’ve experienced a complete flip from one year back, when there were more bank owned properties than short sales listed in our distressed home sales.

Recently, short sales outnumbered REOs 3:1, and then climbed back up to 3:2 according to monthly sales reported by Ada County Association of Realtors. REOs are bank owned properties that have passed the short sale point, gone through foreclosure, gone to auction and come back on the market as bank owned.

Some speculate that we are clearing out the shadow inventory. I interpret it to mean equity seekers searching the distressed home inventory need to adjust their shopping habits and expectations to match the market (and I can help with that part).

 

Source: www.acarwatercooler.com

Shopping Short Sales

If fewer homes are becoming bank-owned or REO, it’s time to either look elsewhere or look sooner in the foreclosure process. Many a very PATIENT person or investor has been doing that – watching for short sales, signs of short sales or even public notices of sale dates to get in “pre-foreclosure.” They are approaching distressed homeowners (in droves) with an offers 20% or more below market value that will help them avoid foreclosure. This approach to buying is not just time consuming –it’s still not a sure thing. Resources like the Realty Bargains website could make it easier to locate pre-foreclosure distressed properties.

Remember, short sale offers take a long time and often don’t yield a favorable response (if they yield a response at all). Getting offers in very soon after a short sale hits the MLS is advisable, if you find one you like.

To each his own.   Source: www.fosterboise.com

If you’re looking and your expectations on this process are realistic, I’m happy to tackle the additional work, follow up and time it takes to chase a short sale. The bright side is, you can still shop while you’re waiting for a response to your offer (a much less common practice with faster-moving, traditional offers).

Better Time to Sell

Distressed sales affect local home values, so as the number of distressed sales decreases, homes values may level out to reflect more non-distressed prices. This, combined with an inventory shortage, is good news for people who have wanted to sell, but couldn’t face market prices of January 2012.

If you have a home to sell, even If you’re distressed and looking for an “out,” I have a lot of buyers looking out for good homes right now and inventory is low. Either way, I’m at your service.

Thanks for reading!

Sincerely,

Shana Foster Moore,
Your Local, Boise Real Estate Professional

Leave a Reply