Sales volume in the distressed home market in the Prescott AZ area remained strong with 33 homes closing in the last 15 days of June. This compares to 77 homes sold by traditional resales during the same period, about 30% of overall sales.
The average price per square foot for REO and short sales was $86 and the average time to sell was 117 days compared to $117 per square foot and 159 days on market for traditional resales. That means that distressed homes are selling at about 25% off!
Short sales about 20% of sales: of the 33 homes sold, 7 were short sales (highlighted in yellow). Short sales are starting to make up a larger percentage of the distressed home sales in the Prescott area.
Are you going to make an offer on a short sale?
Read this first: 10 questions for Prescott AZ short sale brokers
Over 45% of the homes sold at or more than asking price (see green highlight). Last week we were at 47%. Some of the buyers I am working with right now are trying to get 20% off of the bank's price. You can see how futile this exercise is when the average was only 2.8% off. The discount on tradtional sales was an average 6.5% off of the list price.
To see a better image of this graph, go to the original post on my blog.
Considering making an offer in today's distressed home marketplace in Prescott or Prescott Valley? See: Top 10 tips to win the REO multiple offer game.
For more information on any of these listings, please contact me.
Search for Prescott area REO/Foreclosed and Short Sale Listings
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Foreclosure activity booming this week |
| Thirty nine foreclosed or short sale homes came on the market last week, way up from last week's 18. They made up about one in every 3 homes being listed in the Prescott Arizona Area MLS system. This is a marked increase and a one week high for distressed listings in the Prescott area. Could some of the phantom inventory being coming on the market?
See this post: Banks to unleash a phantom inventory of foreclosures say some There were also 87 traditional listings that came on the market last week at an average of $177 per square foot. Compare that to the $104 per square foot average for the homes below. Which ones do you think will sell faster? Short Sales: 9/39 are short sale listings (see yellow highlight). Short sales are becoming easier to deal with with some banks. I actually got through to a Citibank loan rep on 1 ring yesterday dealing with a short sale and they were very friendly too! If this is indeed a trend it could mean some better news for sellers and buyers alike who have been suffering from pathetic service from banks servicing short sales. Thinking about a short sale? Read these tips to make it go as quickly as possible: |
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Foreclosure/REO/bank-owned or short sale? To get more information about any of these listings or any others in Prescott, Prescott Valley, |
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Featured Listing: SHORT SALE
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Sales volume in the distressed home market in the Prescott AZ area is up to a record high this year with 36 homes closing in the first 15 days of June. This compares to 79 homes sold by traditional resales during the same period.
The average price per square foot for REO and short sales was $91 and the average time to sell was 123 days compared to $111 per square foot and 163 days on market for traditional resales. Traditional home sellers are continuing the trend of reducing their prices to sell against the foreclosures and short sales.
Short sales about 12% of sales: of the 36 homes sold, 4 were short sales (highlighted in yellow). REOs continue to sell at a much higher rate than short sales.
Over 47% of the homes sold at or more than asking price (see green highlight). Last week we were at 42%. This continues to be amazing in a "weak market." Also note that most of the ones that sold quickly (list is sorted by Cumulative Days on Market (CDOM) received full price offers.
Some of the buyers I am working with right now are trying to get 20% off of the bank's price. You can see how futile this exercise is when the average is only 2.1% off.
See: Why short sales aren't always a good deal.
This is a screenshot. To see the orignal table go to my blog entry here.
Considering making an offer in today's distressed home marketplace in Prescott or Prescott Valley? See: Top 10 tips to win the REO multiple offer game.
For more information on any of these listings, please contact me.
Search for Prescott area REO/Foreclosed and Short Sale Listings
Several newspapers thought that a decline in May foreclosures from April's record high was good news, but a decline off a record is not necessarily healthy. Here's an article from the WSJ that I thought was a little more appropriate.
Here's a bleak milestone: there's been more the 1 million foreclosures filed in the U.S. so far this year, according to a count by the Center for Responsible Lending.
Not all of those foreclosures will result in evictions, but the statistic offers a sobering illustration of the magnitude of the problems that still face the housing market.
Some worry that the sheer volume of foreclosures could swamp the government's efforts to help underwater borrowers refinance and to modify loans of distressed homeowners. Three weeks ago, Treasury department officials estimated that more than 55,000 homeowners had been helped so far by the Obama administration's loan modification plans, including some 15,000 borrowers who were in trial modifications with Chase Home Mortgage, and 3,000 who were in a trial with Wells Fargo.
The CRL, a nonprofit research and lobbying group that favors aggressive policies to help troubled homeowners, estimates that there are 6,500 new foreclosures filed every day. The center estimates that there will be 2.4 million foreclosure starts in 2009, based off of figures from the Mortgage Bankers Association that are adjusted to reflect the entire mortgage market.
The CRL supports the Obama administration's efforts to set standards for banks to modify loans, where the government will match in part the costs to the servicer to lower mortgage payments to 31% of a borrower's income. The CRL warns that "loan modifications are not likely to succeed with superficial fixes that fail to lower a homeowner's monthly payment."
With an estimated 2.4 million foreclosure starting this year and a paltry 55,000 loan mods, the REO business should continue to grow in all areas including Prescott, Prescott Valley, Chino Valley, and Dewey-Humboldt.
Twenty-seven new foreclosed or short sale homes came on the market last week, up 50% from last week's 16. These made up about one in every 5 homes being listed in the Prescott Arizona Area MLS system.
Short Sales: 12/27 are short sale listings (see yellow highlight). Short sales are starting to make up more and more of the distressed inventory. I think this is mainly due to the fact that more agents and homeowners are becoming familiar with the process. And most of the new short sale listings are being priced more aggressively too. Many of my buyers are looking at the $100 per square foot number as a goal...might work in Prescott Valley, but in Prescott, this is tough for anything of quality.
Thinking about a short sale? Read these tips to make it go as quickly as possible:
How to help speed up a short sale tips
To get more information about any of these listings or any others in Prescott, Prescott Valley, Chino Valley or Dewey-Humboldt areas, feel free to contact me, or you can search by MLS number, address, or lots of other ways in our Search Prescott MLS section.
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Prescott, AZ, REALTOR focused on the foreclosure markets in Prescott, Prescott Valley, Chino Valley, and Dewey-Humboldt in Northern Arizona.
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