From NMD:
RealtyTrac reports that the nature of distressed property sales is evolving. In its most recent report on market and distressed sales, the company noted that changing economics are increasing the reliance on more traditional third party purchases at foreclosure auctions rather than the lender/borrower negotiated sale at less than the outstanding loan balance.
“After a surge in short sales in late 2011 and early 2012, the favored disposition method for distressed properties is shifting back toward the more traditional foreclosure auction sales and bank-owned sales,” said Daren Blomquist, vice president at RealtyTrac.
“The combination of rapidly rising home prices – along with strong demand from institutional investors and other cash buyers able to buy at the public foreclosure auction or an as-is REO home – means short sales are becoming less favorable for lenders.”
Read entire article here:
http://www.mortgagenewsdaily.com/11252013_realtytrac_home_sales.asp
A good graphic showing how any realtor who specialized in short sales has seen their business cut by 2/3s in less than 24 months.
The graph also shows REO sales haven’t changed much – about 10% of sales nationwide over the last 24 months. But in areas like our where prices bounced back, homeowners are fighting foreclosure more in hopes of cashing in some day.
It may not be obvious, but 2013 has been a major disruption for realtors specializing in those two categories.
A guy who was one of the Big 3 foreclosure agents in SD – he sold 323 properties in 2009 – told me the other day that he is closing up shop and moving to the mid-west.
Makes me wonder if all the cash money plugged into the short sales and flips over the past few years is looking for a new home or if they are taking losses.
I too know “certified” short sale specialists skipping town and flippers who now don’t know what to do for work.
I don’t think I’ve seen a flipper lose money, but there are several ‘not-flipped-yets’ lying around.
They could lower the price and move all of them, but they are so accustomed to being right about price that they’d rather wait, than be wrong.