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February 27th, 2009 8:54 AM by David W. Welch
As of yesterday there were 887 closed sales posted in the MLS with a median sales price of $150,000. Of that number 509 (57%) were identified as distressed sales and 380 of those were labeled as bank owned properties (REO). There are currently 22,500 active listings with 8,341 (37%) properties in distress, but only 1,680 are designated as bank owned. The number of pending contracts continues to rise as short sales and bank owned properties clog up the system. There are 4,377 pending with 2,749 (63%) in distress and 1,208 of those being REO's.
Notice that REO's are 44% of the pending distress sales (1,208 out of 2,749), but they make up about 75% of the closed distress sales (380 out of 509). This is a dramatic illustration of how short sales especially are gumming up the system. These numbers do not even reflect the short sales that have offers on them, but they keep them active on the market. This practice goes contrary to MLS rules here locally, but that is often one of the terms in the negotiated contracts. In a nutshell, February is shaping up nicely and is likely to have higher sales than both January and last February. The median price looks to have a slight improvement over January. Inventory should ease down a little bit more, and pending contracts are soaring.
David Welch, Real Estate Optimist