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July 5th, 2010 2:10 PM by David W. Welch
Nearly 12% of the pending short sales closed last month. While that may not sound like anything to write home about, that is way up from the usual 8% range that has been pretty typical. June sales that have been recorded so far are way up overall with 2,879, which is the best in four years. Of that number 730 were short sales, which is definitely the biggest number I recall seeing since I have been watching them. The number of pending short sales has dropped by about 600 to 6,092 while the active short sales remains in the 5,700 range. Over 41% of the closed sales were bank owned with 1,192, so about 67% of all sales were distressed properties.
Prices continue to be far different between the "normal" sales, short sale and bank owned with $165,000, $116,500 and $75,000 median sales prices respectively. Investors continue to snatch up bargain priced distressed properties with about 46% of sales being all cash. About 64% of REO sales were cash, 41% of the short sales and only about 27% of the "normal" sales. The overall median sales price was $117,000 while all cash sales posted only a $61,000 median sales price. Financed sales had a median sales price of $150,000.
At least some of the increase in sales, prices and percentage of financed sales is attributed to the tax credit. Buyers, pushed to get properties under contract by the April 30th, bid a little higher and were more likely to take a chance on a short sale. Since Congress agreed to extend the closing time period and the President is likely to sign the bills, we may see more short sales come off the books over the next few months.
David Welch Real Estate Optimist, Orlando Real Estate