IMPORTANT UPDATE: Updated statistics showing the number of distressed properties Sold compared to the total monthly Single Family Residential Sales in Kitsap County.

 

Graph showing 23 months distressed property sales vs ttl sales

Graph showing 23 months distressed property sales vs ttl sales

 

 

 

 

 

 

 

  (For the most recent data, go here )

In the 4 months since I last reviewed this data (March 2011), it appears that Distressed properties are continuing to comprise about 30% of the total property Sales in Kitsap County.   There appears to be a slight declining trend developing.  In each of the last 4 months, distressed properties as a percentage of total property sales have been declining from 36% in April to 28% in July.  This is still a high percentage and is still having a negative impact on resale home prices, but it is good to see a declining trend and I hope it continues.

 

In analyzing the data, there is a very interesting trend developing.  The percentage of distressed property sales that are comprised of Short Sales compared to REO (Bank Owned) sales has been dramatically increasing!  In the previous 19 months, Short Sales had consistently comprised about 25% of the total distressed property sales.  In two of the last four months Short Sales comprised 50%! Of the total distressed property sales and in the other two months, Short Sales were 30% of those respective monthly distressed property sales.

 

It may be a bit early to draw a conclusion from this, but I think it is indicating that Banks are beginning to work harder to accommodate Short Sales rather than foreclose on distressed mortgagors (borrowers)!  I have commented and it has been in many publications, that Bank Owned Real Estate (REO’s) have been underselling the current market prices for homes by a national average of 30-35%.  This number varies quite a bit from area to area, but the data is clear:  REO properties are being sold at below current market values and have continued to put significant downward pressure on all resale home prices.

 

I’m thrilled if this trend continues, because while Short Sales are often sold at a discount, they are discounted much less than if the home were an REO property and this will contribute to stabilizing home prices!

 

There are other potential negative issues for the mortgagor with Short Sales, but overall, I think it is a positive development for the Real Estate Market.

 

-Brian Wilson, Broker
John L. Scott Real Estate – Poulsbo

 

About admin

Presently I'm a full time Real Estate Broker with John L. Scott Real Estate in Poulsbo, WA. In Kitsap County, our team of two earned one of only four "Presidents Elite" awards for Sales in 2010! I received my degee in Electrical Engineering (BSEE) from the University of Washington in 1999 and then worked as a Sr. System Engineer for Cerner Corp. in Kansas City, MO. I worked on IBM/AIX Servers running Oracle Databases, and MS Windows workstations on the client side installing, updating, and educating clients in the Hospital & Healthcare industries. Previous to all this, I co-founded 2 electronics companies which designed and manufactured a variety of electronic products including test equipment for Volve Penta and Volvo Cars of N. America, Marine Sonar equipment and fish finders, and then our own unique non-intrusive unltrasonic tank fluid monitoring system, which found applications in diverse industries including: cosmetics, nuclear, food, chemicals and semi-conductor processing. In these ventures my positions varied from product design, product development management, and marketing. If you haven't see the new Real Estate Site, for my partner Jana Salmans and I, please visit: http://www.JanaAndBrian.com Thank You for visiting, please come back often. -Brian Wilson (admin)
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