Jun 25, 2008

27,000+ Homes on the Market

In the primary 4 county area we do our core business in (Placer, Sacramento, El Dorado, and Yolo).

These statistics just in...

Of those 27,000+ homes:

- Roughly 26% are "REO" (Bank Owned, foreclosed properties)
- Roughly 36% are Short Sales.


The remaining 38% are a combination of private party sales (the traditional home sale), relocation sales, and new construction (when the builder chooses to use MLS).

By comparison? In 2004 there were only two (2!) short sale transactions for the whole year in these same 4 counties! Now we're seeing months where more than 800 short sales are going on the market.

What is getting into escrow?

2 out of every 5 transactions are bank owned. This is a huge jump up in transaction rate, and a giant leap in their abilities from where they were 12 months ago.

Short Sales?

The rate of closure overall is still somewhere around 15% - 20%. What does that mean in how we generate offers for our Buyers? We still use the "shotgun" approach. Blast out offers on half a dozen properties and run with the first one that hits. Betting on just one property at a time will get you nowhere in this market.

Bottom Line?

Patience. If you can't wait for the delays caused by Short Sales or REOs... then call me and we will go look at new construction!

- Jim

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