Good morning all: And a beautiful morning it is. Highs should be in the 70's here. I was thinking last night (always a dangerous concept!) about how even in our area it seems that most of the sales are short sales, foreclosures, or REO's. That's not completely true as these amount to about 35-40% of our market. I would hazard to guess the rest are mostly first-time homebuyers taking advantage of lower prices and interest rates.
In Seattle, we've been hit but probably not as hard as other parts of the country. Still, it seems to me that most of the move-up buyers and a large percentage of first-timers are interested in what they perceive as deeply discounted property. In some cases, that's true although you'll never convince me that bank-owned real estate is a bargain. Why do I say that? It could be that one of my contacts in my database is a banker who's in charge of REO's. And this particular bank doesn't seem that interested in disposing of what they have for 50 cents on the dollar or anything like that.
On the other hand, I've got several clients wanting to make offers on short sales. Alot of it is from builders who are upside down and feeling the heat from their bank. This year I expect more of these to come to fruition. If the bank can agree to taking less than what is owed, they don't have to own it and the builder can potentially keep that relationship when he needs to build again.
What are you seeing in your market? I know these types of transactions can often take months to complete. I know this is trying your patience along with the fact you may not always earn your full commission if the deal is too tight. How are you dealing with this changing market? I think we still have a way to go. The bottom line is there is still a ton of inventory out there and very little new is being built. Until we reduce what we have, I don't expect the market to change much. I am seeing increased activity out there and wish you well this year. Thanks for reading! If you're not up-to-speed with short sales, etc, I suggest for now that you get educated. Have a great day!
Paul McFadden
Where have you been? Enjoying your lovely location? Yes.....almost my entire market is short sale. It's been this way for well over a year. Actually recently we have found that more bank-owned, approved short sales and seller with equity are coming on the market, which is a welcome change.
Good morning Paul,
Thank you for your post. It's good to know what's going on in residential real estate in different areas of the country.
Seems to me that even if a property isn't a short sale or an REO, the other sellers need to adjust their prices accordingly....the more that short sales & REOs make up a marketplace, the more price competitive other sellers need to be.
That's just one person's opinion, anyway.
Have a great day!
Paul, it does seem that all the "noise" is about Short Sales. They lead the topics on the "featured page" and at the water cooler. I think our numbers are similar to yours. These first time homebuyers want the best of both worlds. The lower prices AND the incentive.
Connie: Thanks for your thoughts. I appreciate it! That's what I'm seeing and hearing as well.
Colleen: I appreciate you weighing in. You also have a great day!
Karen: We're usually a little behind everyone else. I wish you well this year!
Yup Paul - we've been spoiled up here. Biggest factor in that is we seemed to arrive at the Pay Option Arm party a little later than other parts of the country. And most of our current inventory glut is due to builders here still building full speed ahead even after the market shifted and lenders around here saying "it won't happen here". But we're seeing a summer ahead of us filled with great deals for buyers and tough losses for some sellers.
But the sunshine does look good out there now, don't it?
Glenn: I was just out in the sun for lunch. I heard it's supposed to continue into mid week next week. Yahoo! I agree with you about our market. I'm definitely seeing renewed interest on the buyer's side albeit most are looking for a great deal. The difference being that a lot of the builders need to sell or else. Thanks again!