As Succesful Short Sale numbers grow, are REO's becoming a thing of the past?

Foreclosure sign taped to a front door. The Real Estate Market appears to be shifting.  Foreclosure (REO) sales have been making up for about 60% of the sales in the Valley since the beginning of the year, but that number seems to be diminishing as successful Short Sales begin to rise.  Check this out for 2009.  The information is based only on successful closings (completed sales):

  • January ~   4680 Sales  ~  66% were REO and 9% were Short Sale
  • February ~ 5420 Sales  ~ 60% were REO and 9% were Short Sale
  • March ~       7569 Sales  ~ 67% were REO and 9% were Short Sale
  • April ~          8494 Sales  ~ 65% were REO and 9% were Short Sale
  • May ~            9212 Sales  ~ 63% were REO and 10% were Short Sale
  • June ~           9269 Sales  ~ 58% were REO and 13% were Short Sale
  • July ~            9059 Sales  ~ 54% were REO and 15% were Short Sale
  • August  ~     7096 Sales  ~ 52% were REO and 17% were Short Sale  

There are currently 31,268 Active homes listed ~ 14% are REO ~ 24% are Short Sale
There are currently 18,985 Pending homes listed ~ 29% are REO ~ 48% are Short Sale

The writing is on the wall.  Could it be that the banks are finally getting a clue that short sales save them money?  Could it be that agents are finally getting the education required to successfully close the deal, like the CDPE designation?   Maybe it’s a combination of both. 

As long as we have distressed owners in hardship cases, I hope to see the REO numbers continue to fall and successful Short Sales numbers rise.  (of course it would be even better if they both went away and everyone MADE money on their home investment!  But until then…)

Short Sales can help a seller exit their home gracefully, with a smaller financial scar on their record and save the bank money in the process.  Seems like a no-brainer to me.

The State of Arizona offers residents a very helpful publication.  If you feel you may be forced to sell your home (due to hardship) for less than it will appraise for, please check out the Arizona Foreclosure Information Workbook for help.

*Sales data obtained from the Arizona Regional MLS and is deemed reliable but not guaranteed.

Trackbacks

  1. […] I’m a little worried about yellow Porsche guy.  It seems our market is changing and he may lose his REO niche on top of it all.  The AZ Republic article reported that 60% of all valley home sales are foreclosures.  True, they WERE.  My post yesterday shares some interesting figures about where our market seems to be heading and it appears the numbers on REO sales are falling.  […]