REO’s and Short-Sales + New Home Sales rule the roost!
Welcome! As a leading Realtor of 30+ years here in Sonoma County I’ve always strived to “know my numbers” when it comes to the local marketplace. My latest analysis of the August data points out a few remarkable trends. Yes, this is a “post-foreclosure” marketplace but only on the “Sales” side of the equation. Huh? It’s like this–the Real Estate Owned or REO market, “post-foreclosure” or after the banks gotten the property back is only 17% of our “Active” listing which number close to 2500 here in Sonoma County BUT–the big news? They make up over 43% of ALL Sales!
Total Months of Inventory for REO’s? just about 2 1/2. The entire market? 6 months! Low inventory, multiple offers, properties going OVER asking price–sound familiar!??! Yes–it’s called a “raging” Seller’s market! And with this we SHOULD have appreciation. Right? I mean, didn’t we have 10,15,20% appreciation when we had these type of scenarios? Yes–but that was THEN and NOW we have NO appreciation! This is the great “connundrum” of our current marketplace.
And you’ve heard, “It’s a Buyer’s Market”–right!? NOPE! Not at the entry level price points or in the Bank Owned or REO segment.
Buyer’s market? Sure–but you’ll need to get over $500,000! 75% of our market is UNDER $500,000. And here’s a real startling fact–when you combine the REO,Short-Sale (post and pre-foreclosure markets) and throw on the new home builder dumping product–a whopping 53% of the market is NOT BUYING ANYTHING when they sell!! This should be very disconcerting to you folks trying to sell a home in the mid-level and upper price points.
Why? Sales are kinda paltry at 421 for August–take away over half and you’ve got only 210 sales and I suspect, but have no solid numbers to bear it out, that many of those 210 are NOT getting BACK into the marketplace. They could be relocating, or just taking their cash and putting it in the.., Geez, I don’t know–where DO YOU put your money nowadays!!
You have a home priced at $650,000 and you are getting NO showings. You get an offer–TREAT IT LIKE GOLD!! It may be the ONLY one you get!
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