Distressed Sale Update

About every two weeks I get a report on Orange County market conditions from Steve Thomas.  Steve's expertise is statistics, so I really like his info.  His latest report says:

 :  "Foreclosures and short sales combined only account for 4% of the active listing inventory.

Foreclosures and short sales have a much smaller roll in today’s Orange County housing market.  In February 2012 they made up 47% of all closed sales, 29% were short sales and 18% were foreclosures.  Flash forward to today and they are only 15% of the market, 11% short sales and 4% foreclosures"

He says this transition started in the first quarter of last year.  Homeowners with equity have been jumping in and properties began to appreciate.  So while there are still many homeowners in trouble, they are no longer the driving force of the market.  That means banks are also not the major market force they once were--except when it comes to financing new loans.

So, it would seem then, that there is so much pent-up need from Buyers that we have this run on the available inventory, which is still in shorter supply then the demand.  I showed property yesterday and we would run into other people coming out of, or into, the homes we were viewing.  It was almost a 'parade' of hopeful home buyers. The key is to be persistent and not give up hope.  And, it sometimes takes some ingenuity to put a deal together.  

This morning on the Today Show a woman in the Oakland area was finally moving into a home she had just purchased.  It was the nineth home she had written an offer on and her offer was $100,000 over asking price.  I've seen or heard of several unique ways of trying to be The offer chosen.  It seems like not too many years ago we were doing this same thing.

Anyone interested in getting Steve Thomas' full six page, Orange County report, please send me your email address.  That's for non-real estate professionals.  Those in the business will need go to his web site and sign up there.