Here’s your January update on Foreclosure activity in King, Snohomish, and Pierce counties. First up, the Notice of Trustee Sale summary:
January 2008
King: 915 NTS, up 113% YOY
Snohomish: 463 NTS, up 95% YOY
Pierce: 681 NTS, up 69% YOY
First let’s look at the percentage of households that received a Notice of Trustee Sale (based on household data for each county from the American Community Survey, assuming linear household growth between surveys):
King County came in at 1 NTS per 854 households, Snohomish County had 1 NTS per 565 households, and Pierce had 1 NTS for every 434 households.
For comparison, the latest data from RealtyTrac—whose definition of foreclosure includes Notice of Default, Auction, Notice of Trustee Sale, and Real Estate Owned—shows King County with 1 foreclosure for every 794 housing units, Snohomish at 1 foreclosure for every 602 housing units, and Pierce with 1 foreclosure for every 393 housing units.
Back in October a reader commented that the rapidly rising volume of foreclosures would could meet and even exceed the monthly volume of closed sales as early as December 2008. My response was that “I really doubt it will happen as early as December.” As it turns out, I was correct, but tj was only off by one month. Here’s a look at foreclosure volume (as measured by Notices of Trustee Sale) compared to closed sales volume (SFH + condo) in King County:
January saw just 906 closed sales, and 915 Notices of Trustee Sale sent out. As you might guess, the situation is even more extreme in Snohomish and Pierce:
Yikes!
Following are charts of King, Pierce, and Snohomish County foreclosures from January 2000 through January 2009, with uniform y-axis scales to provide easier comparison. Click below to continue…
Foreclosures continued to shoot up in King County in January, reaching a new high point of 915.
Snohomish County was also up from December, and also set a new record at 463.
Pierce County set a new record as well, coming in at 681.
Coverage elsewhere:
Seattle Times: Foreclosure rates continue to climb; state still ranks in the middle of the pack
Seattle P-I: Area foreclosure rate is catching up with nation’s
Note: The graphs above are derived from monthly Notice of Trustee Sale counts gathered at King, Snohomish, and Pierce County records. For a longer-term picture of King County foreclosures back to 1979, refer to this post.
For the full legal definition of what a Notice of Trustee Sale is and how it fits into the foreclosure process, check out RCW 61.24.040. The short version is that it is the notice sent to delinquent borrowers that their home will be repossessed in 90 days.
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By David Losh @ 98:
This is the same as understanding the customer. If you understand the customer, then you know what will add value for that customer.
Price is one part of the marketing mix, but in our current conditions, I suggest it’s becoming more and more important. Specifically supply continues to increase, and as such, pricing becomes more of an issue. This also follows from the shift in demand. I hope it is clear that the demand curve has shifted to the left.
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By Kary L. Krismer @ 100:
At the right price, I bet you’d buy it.
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RE: AMS @ 102 – No not me. A year and a half ago, when we were looking, we found a place we both liked, but it was near four large electrical transmission lines (the ones by 140th and the Maple Valley Highway). You couldn’t see them through the trees (at least in the summer), but I didn’t want to live near such a thing.
But yes, at some price someone will buy that place. I just wonder what kind of discount for that thing across the street the appraiser put on that place when the foreclosed loan was made. I bet there wasn’t a single dollar adjustment.
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By Kary L. Krismer @ 103:
Would you buy for $1? (After this, the deal will include cash to you, maybe you can just save the hassle and tell me how much cash I have to toss in to get you to buy the unit. Mind you are not required to live in the place.)
How much would I have to pay you to live in that area?
I’d suggest that your price is below some other buyer’s willing and able price. One of the basics of economics is that you will buy given the right deal. One basic assumption that is normally made is that all property has positive economic value to each potential buyer, but this is not always true. Often people have to pay to get rid of trash, and there are properties out there that have negative value, for example Superfund sites. It’s not a question of if, but rather, how much.
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RE: AMS @ 104 – Could I make it a rental? ;-)
I agree someone will buy it for a price. I’d have to be in desperate straights to live there myself.
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By Kary L. Krismer @ 105:
Yes, the laws have not changed. I am not an attorney, so I cannot tell you that you can for sure rent it, but I would bet on yes. I guess you could rent it, sell it, burn it to the ground (with a permit, of course), put it on craigslist for free, and so on–whatever is legal.
The point remains, however: It’s not a matter of if, but rather, at what price.
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RE: Kary L. Krismer @ 3 – Just to update this, the number of Trustee’s Deeds in February was 233–three more than last month.
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