The company RealtyTrac has recently announced their Q1 2013 U.S. Foreclosure & Short Sales Report™. After thoroughly reading through all of the report, one of the most interesting and intriguing aspects of the actual report itself was the lack of completed Short Sales. According to the report, Portland real estate properties not in foreclosure that have been sold as short sales from the bank in the first quarter were accounted for an approximate 15% of all residential Oregon real estate sales. This is actually down an amazing 10% from the previous quarter (4th quarter of 2012) and down a very astonishing 35% from the first quarter of 2012.
Daren Blomquist, vice president at RealtyTrac, was also intrigued by the lack of short sales occurring:
“We expected foreclosure-related sales to be lower given the downward trend in new foreclosure activity nationwide over the past two and a half years, but the decrease in non-foreclosure short sales was a bit of a surprise given the 11 million homeowners nationwide still underwater.”
Certain Real Estate Heavy Markets Still Heavily Impacted
Although the overall United States numbers of real estate short sales are currently down, there are still a few markets in which this category is still a large issue. Here are the top six states with the highest percentage of short sales:
- Rhode Island (44%)
- Connecticut (42%)
- Massachusetts (40%)
- Nevada (29%)
- Florida (26%)
- Ohio (24%)
Here are the major real estate markets with the highest percentages of short sales:
- Boston (38%)
- Cleveland (33%)
- Memphis (32%)
- Las Vegas (32%)
- Detroit (30%)
Why is there a Decrease in Short Sales?
Even though the overall decrease is still very shocking to most home buyers, sellers and agents, Blomquist explains why this phenomenon may have taken place:
“Rising home prices in many markets are stunting the continued growth of short sales by reducing incentive for both underwater homeowners and lenders. Underwater homeowners may be willing to stick it out a few more months or even years in the hope that they will be able to walk away with money at the closing table and without a hit to their credit rating, and for lenders a failed short sale may no longer translate into bigger losses down the road given that average prices of bank-owned homes are rising — at a faster pace than non-distressed home prices in many markets.”
Even with this dramatic decrease in short sales, they are still going to remain a vital part of the real estate industry as 15% is a substantially significant number when looking at millions of homes being sold. However, the overall decrease is a great sign that the Portland housing market is turning around and the bidding wars that are occurring are going to be sticking around for as long as the inventory remains so low.
If you are thinking of selling your Portland home, now is the best time to do it. With low inventory and high amounts of buyers, you will see an offer within days of listing! Contact us at the Godfrey Real Estate Group and see how we can help make your real estate sale that much simpler! With mega agent Lori Godfrey, you can expect to have your home marketed, listed and staged beautifully!