Posted by: The Tim

Tim Ellis is the founder of Seattle Bubble. His background in engineering and computer / internet technology, a fondness of data-based analysis of problems, and an addiction to spreadsheets all influence his perspective on the Seattle-area real estate market.

4 responses to “Sales of Expensive Non-Distressed Homes Surging”

  1. Plymster

    When I look at the chart and fiddle with the settings (for King County), I compare the Bank Owned and Short Sales, and see roughly the same distribution across the price spectrum (bank-owned appear shifted about $50k cheaper than short sales). When I look at non-distressed, I see a $200k premium added to short sales. That’s a hefty price improvement for a non-distressed home vs a short sale.

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  2. Steve Putnam

    I think your chart would be more instructive if you broke out the >$1M into more granular buckets. Perhaps looking at $100K buckets out to $1.5M, and then have a “>” bar? Not that I could afford it but it would be interested in seeing if there is a creep rightward in the data.

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  3. ChrisM

    Are you looking at MLS sales, or are you exhaustively looking at county records, with all their weirdnesses? Down here in Clark county, I see bank-owned house “transfers” that happen outside of the MLS.

    I’ve reported some of the issues to RedFin, but haven’t heard back.

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  4. Kary L. Krismer

    By Plymster @ 1:

    When I look at the chart and fiddle with the settings (for King County), I compare the Bank Owned and Short Sales, and see roughly the same distribution across the price spectrum (bank-owned appear shifted about $50k cheaper than short sales). When I look at non-distressed, I see a $200k premium added to short sales. That’s a hefty price improvement for a non-distressed home vs a short sale.

    I’m not sure how you could possibly determine that from that data available here. All you know from this data is the price and quantity sold. You don’t know anything about the attributes of the houses themselves.

    In any case, the difference is not a premium, but instead a discount on the short sale houses and REOs. Not everyone is in position to buy a short sale property, particularly people who currently rent. And although interest rates have been low for some time, and are expected to remain so, not everyone wants to make an offer on a short sale property where they cannot lock their rate. As to both REOs and short sales there are likely condition deficiencies, or at least uncertainties at the time the offer is made. And as to REOs there are uncertain or unfavorable terms compared to normal sales, and also, REO properties do tend to be less desirable properties as to location. They’re basically what remains unsold at the trustees’ sales.

    Both can lead to some pretty good bargains, but not everyone is either in a position to go after them, or has a desire to go after them. That means less demand and lower prices.

    As to the $200,000 discount, that probably does happen with some frequency on properties that are worth something north of $600,000. It’s probably relatively rare below that point. The $50,000 discount for bank owned is probably much more common.

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