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Shueh, Samuel…, Real Estate Pro in San Jose, CA

San Jose, CA regular vs. distressed property sales

Asked by Shueh, Samuel B., San Jose, CA Sun Feb 5, 2012

As the economy recovers the number of bank owned homes become less and less. While the home prices in San Jose has stabilized for ~2 years. They have not moved up.
Consequently, one sees more and more short sales surface on the market.

Today less than half of the residential sales comprise of short sale type.

REO short sale Regular
May_10 8% 19% 73%
Sept_10 13% 16% 71%
May_11 17% 20% 63%
Feb_12 28% 28% 44%

Why regular sales are not easy to find?
First of all, if your parents have lived in the same household and paid off their mortgage, will they want buy a $1 million dollar home with mortgage on it?

When are we going to see more short sales? I will lead and ask others to put in their 2c.
Sam Shueh
Keller Williams

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Answers

2
TerriVellios.Com’s answer
Hi Sam,

Your question is interesting, however, my opinion is you posted it in the wrong category, Agent to Agent or a Blog perhaps.

I think that as we see short sales drop off the regular or equity sales will pick up. Sales are connected. People who want to move up or move down and have some equity may not be able to wait for a short sale approval while selling their own home. Contingent offers are more difficult to get accepted in the REO and Short Sale listings, and then the others may have multiple offers. For sellers who have lost equity but can still buy this is a good time because even though they'll take a hit on their sell they can still make it up in the repurchase and lower interest rates.

As for when will we see more short sales, I've never liked them. And I would be very happy to see a more balanced market.
Web Reference: http://www.terrivellios.com
0 votes Thank Flag Link Mon Feb 6, 2012
As the economy improves and more lenders are willing to do loan modifications for borrowers in financial trouble, I expect the number of short sales to decline further.

People who were willing to do a short sale have already done the short sale. Right now Real Estate prices are artificially depressed. People who do not have to sell their homes in a depressed Real Estate market will continue to hang on to their homes as long as the Real Estate market remains depressed.


When rpices start to rise significantly, that is when I expect to see more regular sales on the market.
.
0 votes Thank Flag Link Sun Feb 5, 2012
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