With the strategy of not-foreclosing working so well for the banks, you can probably say that REO and short-sale listings are winding down. How did we do?
While it is likely that REO and short-sale listings will continue for years, the media keeps touting how the distressed-property numbers are in decline. Lenders should be pursuing defaulters and liquidating their portfolios while the market is hot, but don’t be surprised if you see them do what most regular sellers are doing – waiting for prices go higher.
Here are the grand totals of NSDCC detached-home sales since 2008, when the MLS first started marking the REO and short sales separately:
|Town or Area||REOs#||$/sf||Shorts#||$/sf||Non-REOSS#||$/sf||Non % of Total|
We really didn’t get hit like the subprime-loan areas did, and NSDCC could withstand further foreclosure activity – in fact, homebuyers would welcome it!
Comparing the average $/sf of REO vs. short-sales helps to debunk the myth that short sales are better for the lenders than foreclosures.