Nearly 50% of all homes sales are distressed real estate transactions. No that wasn’t a misprint whatsoever. According to the latest Campbell/Inside Mortgage Finance Monthly Survey of Real Estate Market Conditions, distressed properties, which are those defined as being in some stage of foreclosure or as an REO, have accounted for 48.1 percent of sales.
This was a marked increase from the 37.3 percent level recorded as recently as November. It was also the highest distressed property market share seen since last July.
Increased government efforts, including temporary foreclosure moratoriums and a push to qualify more financially troubled homeowners for mortgage modifications, temporarily reduced the number of distressed properties coming on the housing market in the fall and much of this past winter. But now a growing number of distressed properties appear to be hitting the housing market.
Short sales are leading the way in the distressed property arena. There are three major types of distressed properties: damaged real estate-owned (REO), move-in ready REO, and short sales. During the period from November to February, the proportion of all three categories rose; damaged REO grew from 12.3 percent to 14.4 percent, move-in ready REO grew from 12.6 percent to 16.6 percent, and short sales grew from 12.4 percent to 17.1 percent.
“Short salesnow account for the number one category of distressed property,” commented Thomas Popik, research director for Campbell Surveys. “Losses on short sales are typically lower than for REO, and both lenders and the government are pushing programs to facilitate short sales. But as more and more people default or simply want to walk away from their properties, mortgage servicers are having trouble expeditiously processing these complicated transactions.”
So it’s more obvious than ever, that if you know how to correctly execute a short sale you stand to make an absolute killing in today’s real estate market. We’ve said it before and we’ll say it again, this is truly the best real estate market ever!
Well. That is if you are actually interested in making money.
Listen up, as the foreclosure machine continues, more and more inventory is going to depress prices further and further. It seems the only people who don’t realize this is those real estate agents who are not well versed in Short Sales. There is no such thing as a low ball offer.
We are all now in the liquidation business. Short Sales fail because too many ignore this fact and resist accepting it. As more distressed properties continue to hit the market, home prices are again showing signs of weakness.
Average home prices for all four categories of properties–damaged REO, move-in ready REO, short sales, and non-distressed have declined from January to February in the latest survey.
So what does this all mean? The answer is very simple, distressed real estate equals tremendous opportunity for those who are willing to do what it takes to step up and become liquidators.
Sources:
Monthly Housing Survey The Campbell/Inside Mortgage Finance Monthly Survey of Real Estate Market Conditions has several advantages over alternative information sources on home …
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HOUSING TRENDS UPDATE Housing Trends Update is derived from the. Campbell/Inside. Mortgage Finance. Monthly Survey of. Real Estate Market. Conditions. It is based on a national …
Short Sales See Big Jump in Activity – UPI.com Feb 22, 2010 … The Campbell/Inside Mortgage Finance Monthly Survey of Real Estate Market Conditions polls more than 1500 real estate agents nationwide and …
