Distressed sales have dwindled down to a fraction of the NSDCC market, though they were never a large contributor.
Here are the detached-home sales from the June 1-to-August 31 period:
| Year | ||||
| 2009 | ||||
| 2010 | ||||
| 2011 | ||||
| 2012 | ||||
| 2013 |
There are only 9 active listings of short sales (out of 1,030 total active listings), 29 are marked as contingent currently, plus 4 active listings of REOs.
Should the feds decide to not extend the relief from debt tax past 12/31/13, it should be the final straw and end short sales altogether around here.
For buyers, the hope of getting a deal should be fully extinguished, and just trying to find something suitable for a decent price is a major challenge.
The reason distressed sales are disappearing is because the rules for how banks are supposed to handle distressed have changed or outright ignored. There are 700 problem banks. There 7.1m dwellings with negative equity nationally. 3.47% of mortgages in CA are seriously delinquent.
Banks are not supposed to hold assets, only loans. Banks are supposed to purse delinquencies. Regulators are basically allowing banks to commit accounting fraud for profit.