Many San Jose homes for sale on the Multiple Listing Service are now selling by way of a short sale. What is a short sale? A short sale can occur when the seller owes more in loans on the property than the current market value and sells their home. Completing a short sale takes lender cooperation as the lender(s) must be willing to take less than the actual amount owed on the loan(s) by the seller.
A breakdown of homes currently listed for sale in Santa Clara County indicates that a vast majority of San Jose homes for sale in the lower range of the market are on the market as short sales. It also reveals a trend for much stronger sales activity and that South Bay homes are selling at significantly higher rates.
San Jose Homes for Sale as of 11/13/2009:
Where South Bay homes median home prices are lower:
South San Jose: MLS Listings: 321, Sales Pending: 257 (79%), Short Sale Listings: 241 (74%) Central San Jose: MLS Listings: 312, Sales Pending: 185 (59%), Short Sale Listings: 169 (54%)
Where South Bay homes median home prices are in the middle range:
Blossom Valley: MLS Listings: 246, Sales Pending: 178 (72%), Short Sale Listings: 143 (58%) Cambrian: MLS Listings: 200, Sales Pending: 117 (59%), Short Sale Listings: 64 (32%) Santa Clara: MLS Listings: 205, Sales Pending: 130 (63%), Short Sale Listings: 84 (41%)
Where South Bay homes median home prices are in the higher range:
Almaden Valley: MLS Listings: 106, Sales Pending: 49 (46%), Short Sale Listings: 18 (17%) Willow Glen: MLS Listings: 264, Sales Pending: 123 (47%), Short Sale Listings: 64 (32%)
Until prices rise significantly, numerous short sales are here to stay. We should strive to eliminate the short sales that are on the market that are a waste of time for potential home buyers who have to compete with so many offers and wait so long for lender approval or denial.
We should eliminate the numerous short sale listings that are coming on the market at ridiculously low list prices just to generate activity for the listing agent that have no chance of lender acceptance at the list price.
The sales price matters to the lenders and equal or more importantly it matters to the all the other homeowners in the area whose property values are impacted by the sale of these short sales.
We propose that before a short sale listing can go on the Multiple Listing Service that the lender or lenders who have liens against the property, be required to provide written agreement of the list price, sales price and proceeds that they will receive. It is up to the Santa Clara County Association of Realtors (SCCAOR) and the California Association of Realtors (CAR) to get involved and initiate these changes with local real estate boards. Feel free to e-mail or write them with your concerns.
Look for further articles from Chuck and Anne Hanna regarding the effects of foreclosures and short sales on credit ratings.
Chuck and Anne Hanna
Two Real Estate Brokers, MBA, e-PRO, Attorney
Serving Our Community Since 1990
Direct: 408-426-7980
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San Jose, Santa Clara Real Estaete, Chuck and Anne Hanna, Two Real Estate Brokers, e-PRO,MBA, Attorney,South Bay Homes, San Jose Serving Our Community Since 1990
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