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Many analysts differ on what impactÂ shadow inventory will have on house values in 2013. Some warn that these distressed properties will still play a major role in limiting appreciation. Others believe that the increases in buyer demand will more than offset the increase in supply. The only thing on which everyone agrees is that there will be millions of distressed properties that will need to be liquidated over the next few years. How these properties are handled will have an effect on the impact they will have on values.
According to the National Association of Realtors, foreclosures sell at a 20% discount while a short sale sells at a 16% discount. Therefore, a short sale has less of a negative impact on prices compared to a foreclosure. Obviously, if the mortgage is modified, no sale takes place and there is no impact on surrounding home prices.
The U.S. Treasury Department just issued their latest OCCÂ Mortgage Metrics ReportÂ which reports on how these distressed properties are currently being handled. Here is a graph showing how these properties are being processed now as compared to a year ago.
Provided courtesy ofÂ Neil SingermanÂ DRE 01097970 Rodeo RealtyBrentwood
Information provided by the KCM crew
Beverlywood, Now reallyâ€¦How is the Real Estate market in Beverlywood? I get asked that all the time, â€œHowâ€™s the Real Estate market in the 90034â€ and my response is â€œWell, it depends. Are you looking to buy, sell, rent, or invest?â€ Quite frankly, it is an awesome market if you are a Buyer â€“ interest rates are truly at an all time low and as a Seller with tight inventory supply.Click here to find out the latest stats......