Distressed Sales Tumbled in March

Distressed Sales Tumbled in March

Let’s take another look at what share of the monthly sales are being distressed sales—bank-owned and short sales. In March 2012 20.1% of the sales of single-family homes in King County were bank-owned, just a few points below the highest level on record. In March 2013 that number was just 7.7%.

Bank-Owned: Share of Total Sales - King County Single-Family

As predicted, after bumping up in January and February, the sales of bank owned-homes fell in March.

Short sales also decreased in March, falling from 12.2% in February to 9.4% in March. Down from 10.3% in March 2012, and the lowest point since October 2011.

Short Sales: Share of Total Sales - King County Single-Family

Next week we’ll take a look at how the median prices are moving for bank-owned homes, short sales, and non-distressed sales.

  

About 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.

6 comments:

  1. 1
    drshort says:

    Do you have any stats about how many bank owned and short sales are being added to inventory now vs last year?

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  2. 2

    RE: drshort @ 1

    An October 2012 PI Article Documents a 10% YOY Increase in Short Sales

    http://www.seattlepi.com/realestate/article/Home-short-sales-set-record-in-King-County-3950317.php

    There were 196 foreclosed homes in the Kent area….many look immaculant from the outside [newer]….some with 4 bdrms and low $200s….

    http://www.southkingcountylistings.com/listings/minprice/220000/beds/1/areas/29047,29048,29049,29057,132245,134043,135751/sort/price+asc/#utm_source=reply.com&utm_medium=affiliate-mixed&utm_campaign=affiliates

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  3. 3
    One Eyed Man says:

    RE: drshort @ 1

    Here’s a link to the Realtytrac report on foreclosure inventory for the US for Q1 2013. It has a little of the specific info for Washington, including that pre-foreclosure inventory is up in Washington (I think it said a little over 40%, if I recall correctly) but probably not enough to return us to anywhere near normal total inventory levels (IMO),

    The link will pull up the summary article only. To get the full report go to the last line of the third paragraph and click the link in blue that says “online here.”

    http://www.realtytrac.com/content/foreclosure-market-report/q1-2013-foreclosure-inventory-analysis-7653

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  4. 4
    The Tim says:

    By drshort @ 1:

    Do you have any stats about how many bank owned and short sales are being added to inventory now vs last year?

    I haven’t run the numbers in the last month or so, but as of early February new bank owned and short sale inventory was way down:

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  5. 5
    Erik says:

    RE: The Tim @ 4
    This helps put things into perspective. I think of bank owned sales as kryptonite to housing prices. I think they are close to linearly inverse proportional. In other words they are directly related in driving the price down when bank owned homes increase.

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  6. 6
    Erik says:

    Housing price change = -m(# bank owned sales)+b
    m is positive unknown scaling factor
    b is unknown intercept

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