According to an InmanNews report CoreLogic reported that foreclosures were down 15 percent in April from a year ago, while RealtyTrac reports that Short Sales are at a 3-year high. The article goes on to say that short sales made up 26 percent of the sales in the first quarter of 2012, which is up from the same three-month period last year. In contrast, sales of bank-owned homes (REOs) fell 15 percent.
I’m definitely experiencing the popularity of the short sale with three of my buyers currently in short sale transactions. As of today in the 92127, 92128, 92129, 92064 and 92131 zip codes there are a total of 531 Active Properties For Sale and 65 of them are short sale transactions. Therefore, in these 5 zipcodes in the north inland corridor 12% of the active properties are short sales. This is just a snapshot of the overall San Diego market but definitely points to the fact that Short Sales are NOT Short on Popularity!
Short sales aren’t for the weary because they take time and patience and a buyer who can be flexible on the move-in date. Lenders are cooperating with sellers to accept short sales instead of forcing the home into foreclosure. Short sales are better for the seller because their credit isn’t as adversely affected as a it would be with a foreclosure.