So, when does this become a major problem? Total King County inventory is hovering in the 12,000 area. If about 700 are foreclosures, it's about 5.5%. It doesn't sound like much, but foreclosures tend to sell at about a 20% discount, right? And if banks really need to move these houses, they might be one of the few things moving quickly, which could really start to hurt comps.
What region does that cover? I think it makes more sense to compare it to monthly sales rather than inventory. For KC, Sep sales were 1872. So foreclosures are 32% of that.
RCG, that is 700 new Notice of Trustee sales files in September. It says nothing about what percentage of foreclosures are in the current inventory. Also, there is a three month delay between the filing and the foreclosure auction.
What region does that cover? I think it makes more sense to compare it to monthly sales rather than inventory. For KC, Sep sales were 1872. So foreclosures are 32% of that.
I think that's a pretty good point. It seems to me like if 1/3rd of all sales (or something like it) are foreclosure sales that foreclosures are a bigger drag on the market than I had realized. A number like 600 just sounds so small, until you consider how slow sales are.
So, when does this become a major problem? Total King County inventory is hovering in the 12,000 area. If about 700 are foreclosures, it's about 5.5%. It doesn't sound like much, but foreclosures tend to sell at about a 20% discount, right? And if banks really need to move these houses, they might be one of the few things moving quickly, which could really start to hurt comps.
What region does that cover? I think it makes more sense to compare it to monthly sales rather than inventory. For KC, Sep sales were 1872. So foreclosures are 32% of that.
I think that's a pretty good point. It seems to me like if 1/3rd of all sales (or something like it) are foreclosure sales that foreclosures are a bigger drag on the market than I had realized. A number like 600 just sounds so small, until you consider how slow sales are.
It only matters if you're selling right now. Sit tight!
Comments
Lower home values headed our way soon.
Thoughts?
jon, these numbers are only for King County.
I think that's a pretty good point. It seems to me like if 1/3rd of all sales (or something like it) are foreclosure sales that foreclosures are a bigger drag on the market than I had realized. A number like 600 just sounds so small, until you consider how slow sales are.
Forgive my ignorance, what is a "comp"?
It only matters if you're selling right now. Sit tight!
"comp" = "comparable"
The asking price for a house is generally determined by looking at comparable houses and seeing what they sold for.