Distressed vs. Non

by | Feb 14, 2012 | Market Conditions, North County Coastal, Short Sales, Thinking of Buying?, Thinking of Selling?

Yesterday CR showed the breakdown of distressed sales year-over-year for different cities here.

Let’s look at our last six months, the period during which short-sale approvals have sped up, and compare to the previous year.

A comparison of NSDCC detached listings sold between August 15th and February 13th:

6 Mo. # of Sales 2011/2012 Avg. $$/sf 2011/2012 % share
Non-D
910/930
$395/$390
81%/80%
Shorts
113/150
$323/$291
10%/13%
REOs
96/77
$306/$296
9%/7%
Totals
1,119/1,157
$380/$371

Here are the currently active detached listings in North SD County Coastal:

ACT # of det. actives Avg. LP $/sf % share
Non-D
976
$620/sf
90%
Shorts
80
$302/sf
8%
REOs
26
$286/sf
2%
Totals
1,082
$588/sf

The conversion of REOs to short-sales appears to be underway, though the distressed properties are continuing to make up only about 20% of the sales. How many of the currently non-distressed listings will end up sliding into the other two categories? Probably 25% or so?

Don’t be surprised if REO listings dry up, and short-sales surge the rest of the year as we bear down on the expiration of the debt-tax-relief on 12/31/12.  Will Congress extend?  Could it end up being a political football in this election year? It should, so sellers know where they stand.

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