Short Sales Aren’t Weeds and Won’t Disappear By Summer’s End

Short Sales are here to stay. Two years? Three years? Longer?

Want proof?

This graph represents all residential sales in Orange and Seminole Counties, the two counties in Greater Orlando where I handle the majority of my business.

Distressed Sales — REO/Bank-Owned Sales and Short Sales — represent 64% of all unit sales in May 2009. This is compared to 12% in January 2008.

See any signs of recovery? Neither do I.

Here’s another chart.

SINGLE FAMILY HOMES SOLD IN ORANGE & SEMINOLE COUNTIES

AVERAGE SQUARE FOOT PRICE

Source: Trendgraphix, Inc. and Mid-Florida Regional Multiple Listing Service. Reports based on sales data available for the most recent month of activity.

This represents Average Square Foot Price of Single Family homes sold in these same two counties over the last 24 months. The Average Price has gone down from $175 to $97, a 44.7% drop.

See any signs of recovery? Neither do I. How about the possibility of leveling off? Could be, but only time will tell.

Face it, all you naysayers and optimists. Short Sales are definitely here to stay! Might as well get used to it.