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Charts show a decline in inventory we’ve come to expect in the 4th quarter however they also depict a long-term trend downward. Of equal note, the past 3 years have shown an increase in Bank owned (REO) inventory in the 4th quarter. So far, that isn’t happening. It is early though, we’ll see.
To view charts and tables: http://www.centralorproperty.com/Central,ORTrends.html
In this quickly changing market Short Sales I believe, are the segment to watch and know.
Short Sale inventory trend is pretty flat. Homes are coming on and going off the market pretty regularly. Many distressed property owners have chosen the short sale alternative as a way to avoid foreclosure. Meanwhile, lenders have streamlined their processes to make the short sale transaction easier. Buyers and sellers take note: The key to a successful short sale is an informed and experienced listing agent and buyers agent as well as a seller that is willing to provide the required information to their lender (very similar to obtaining a loan).
Currently the feds are granting an exemption of taxes on the deficiency amount, normally treated as taxable income. Many motivated Lenders/Servicers are paying incentives to short sale as well. The tax exemption is set to expire end of this year. Many believe Congress will extend it but hey, do we really know what Congress is going to do or not do???
For more information on this subject see My Short Sale Guide
All said, short sales are becoming more worthwhile to all parties and will be around for quite some time.
Quick rundown of inventory in percent by sale type:
Short sales 5.4%
REO (Bank Owned) 1.8%
“Non Distressed” 92.8%
For more stats on our market go to one of these sites: