Completed Short Sales are Up and Pricesare Down
Posted by Peter Vekselman Tuesday, 26 June 2012 02:24 No Comments
For investors and homeowners alike, the trend in short sales is good news. Based on analysis of a short sale report issued by RealtyTrac, the volume of short sale houses is up and prices are trending downward. However, it’s still takes a long time to close a short sale deal.
Being from January of this year, the data is a little bit aged, but this trend was anticipated and it is expected to continue into the future. It just takes time to collect and analyze the data.
Nationally, the number of short sales increased 15 percent year on year while sales of foreclosed houses declined by 12 percent. The clear leader, measured by volume, is Bank of America with a monthly average of 5,000 short sales. Chase and Wells Fargo came in second and third respectively. Both averaging a little less than 3,000 short sales each month.
way of measuring the increased volume of short sales is by the largest percentage increase for the major banks, lenders, and servicers. The clear leader was PNC Financial Group by posting a 140 percent increase in completed short sales. However, the three government entities of Fannie Mae, Freddie Mac, and FHA also had a substantial increase at 120 percent.
When it comes to the lowest average selling price, the three big government powerhouses took the lead at slightly below $130,000. According to The National Association of Realtors, the national median price for a house at the same time was $154,700. This would include short sales and real estate owned by banks. The point being is that at an average of $130,000, short sales are selling for significantly less than traditional sales.
Deutsche Bank came in with the second lowest short sale average price at $132,996, with Sun Trust Bank third at $144,024.
Of course, one of the major detractions to short sales is that the time to complete them is anything but short. Fannie, Freddie, and FHA, as a group, averaged a little less than 200 days from the time the foreclosure process began to the time they approved a short sale. Next, is Ally Financial at a whooping 321 days, followed by PNC Financial Group at an alarming 353 days.
Those are the most current short sale facts for investors interested in that sector of the real estate market.
All the Best,
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