Short Sales On The Rise - Short Sale Fundamentals
 
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21
Apr

Short Sales On The Rise

foreclosure-distressed-propertiesThe most recently released data shows that first-time homebuyers accounted for a record-high share of purchases in March. This doesn’t come as much of a surprise since the tax credit deadline is coming up.

Actually lenders have reported a surge in applications this month as the deadline looms so April figures may be even higher.

Economists warn that while the tax credit has had the desired effect of pushing sidelines homebuyers into a decision, the housing market can expect a sizeable dip in the months ahead.

Do you think the end of the credit will hurt sales? Post your thoughts here.

Some market analysts had thought that last October’s surge in first-time home purchases had depleted the pool. They really didn’t expect any big jumps this year. But reports show that 3% more purchases were first-timers in March than in October.

The tax credit combined with the record volume of distressed properties on the market to break previous records. Actually, more than 50% of homes up for sale are distressed properties.

And would you guess which form of distressed sale was the most popular?

The short sale.

That’s right, 18.6% of the housing market was made up of short sales. (Left out of the study was the government’s Home Affordable Foreclosures Alternative program for short sales.)

So these results should give us a lot of optimism about the market with some caution for the coming months. The market is still there and ripe for the short sale. We’ll just have to work a little harder to get those sidelined homebuyers to take the plunge.

  • http://www.bennybuyshouses.com Ben

    The market has to go down, there isn't going to be any incentive for the people that are shopping right now that really SHOULDN'T be shopping to look anymore. Too many people are relying on the 8k when that should be just a bonus. The really motivated people will still buy a house, but they will focus on finding something they really want instead of rushing before the deadline. I'm ready for the next dip.

  • http://www.shortsaleology.com Cory Boatright

    Ben – I think you have a point bro. But right now is STILL AWESOME to pick up some excellent deals on short sales. I have been experimenting with how to pick up short sales that are “pre-listed” and I gotta tell you. The results are starting to pick up. The market may go into another “Dip”, but the current one is pretty good now. I have told The Short Sale Kidd that he needs to buy some of those duplexes he is flipping for $8K and hold onto them. He could rent each side for $700 each! He told me he thinks he can buy them for $20K in a year instead of $25K now… DOES IT REALLY MATTER???? LOL!

  • Tony Branch

    I suspect sales in the modest priced range particularly will go down when the credit expires. Here in the greater Tampa Bay area a very large percentage of sales to first time home buyers are short sales. In fact, many of these buyers are at least somewhat depending on the tax credit. Right now I have 5 valid contracts signed by the seller–but pending 3rd party short sale approval.

    Given the incredible slow response time of the big banks in such situations up to now, I am concerned that many will not respond in time for closing by June 30th. I would urge others who must be in the same situation to call your congressmen and US Senators (and VP Joe Biden's office) to encourage them to put pressure from on high to the banks to respond timely.

  • http://www.bennybuyshouses.com Ben

    Yeah for sure, depending where you are. Down there in FL, seems like they just can't go wrong! Little different up here, but you're right, cash flow is cash flow and the prices are slowly creeping back to earth. I was allergic to short sales at first, but I think that's definitely where I need to plant myself now. You're ahead of the game bro.

  • wayne

    do you have soft ware to do shot sales. how the best way to find short sale properties

  • Diane, Delaware Realtor

    I definitely think the end of the tax credit will hurt sales. It was the first real, tangible opporunity that FTHBs have had since… well, ever. Between the super low prices due to the market plunge and the FTHB Tax Credit, this was an opporunity that will not come around again. So to any who missed the boat… well, that ship has sailed. And I do think we will see a slow down… again.



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