Distressed home sales in Kitsap County which includes bank owned foreclosures (REO’s) and short sales, jumped to 47% of the total homes Sold during the month of January 2012! This is the highest percentage of distressed homes sold since I’ve been tracking the data, which is more than two years now, and may be the highest we’ve ever seen in the County.
I believe this is an anomaly and will not be the case for the month of February. I think the reason for this jump in distressed sales as a percent of total home sales, is that many of these distressed properties were very low priced and represented special opportunities for investors to step in. Many were purchased for land value, rehab opportunities, or very low cost rental properties and they were finally priced compellingly enough to get them sold.
It is going to be interesting to watch future developments, but our anecdotal data is indicating many things that will contribute to much different numbers in February including: tightening inventory, fewer low end and more higher quality and higher priced REO’s being listed, increased sales activity across all areas and price points, & more buyers jumping into the market.
We are hearing things from our clients like: “I’m afraid to wait any longer, the interest rates are so low, there is more upside risk than downside opportunity.” “I’ve been noticing that properties I’ve been watching and like are quickly going “Pending”, “We are tired of waiting to make a move and have been waiting for several years now. It seems like now is a pretty great time to buy the waterfront real estate we’ve been wanting”
We hope you find this information useful and invite your comments in the comment section below. Please let us know your thoughts and if there is any other information you’d like us to consider researching and posting.